Does Ledgers require franchisees to maintain "all risk" property insurance coverage for the assets of the Franchised Business?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
eparers must obtain a paid preparer tax identification number ("PTIN") from the IRS.
Insurance**.** You must obtain and maintain, at your own expense, such insurance coverage as required by your state laws. Moreover, you must obtain and maintain insurance coverage as we require, which may exceed insurance coverage required by your state laws. All insurance policies must name us as an "additional insured" party.
Our current insurance specifications are as follows:
- i "all risk" property insurance coverage for assets of the Franchised Business;
- ii workers' compensation insurance and employer liability coverage with a minimum limit of $100,000 or higher if your state law requires;
- iii comprehensive general liability insurance which includes contractual indemnity with a minimum liability coverage of $1,000,000 per occurrence, or higher if your state law requires;
- iv business interruption insurance;
- v commercial automobile liability insurance of at least $1,000,000 or higher if your state law requires;
- vi
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 23–25)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, franchisees are required to obtain and maintain "all risk" property insurance coverage for the assets of the Franchised Business. This is part of the insurance requirements set by Ledgers, which may exceed the minimum insurance coverage required by state laws. Additionally, all insurance policies must name Ledgers as an "additional insured" party.
Besides the "all risk" property insurance, Ledgers also mandates that franchisees maintain workers' compensation insurance and employer liability coverage with a minimum limit of $100,000 (or higher if required by state law), comprehensive general liability insurance with a minimum liability coverage of $1,000,000 per occurrence (or higher if required by state law), business interruption insurance, commercial automobile liability insurance of at least $1,000,000 (or higher if required by state law), and professional liability insurance for errors and omissions in the amount of $1,000,000.
For a prospective Ledgers franchisee, this means they must budget for comprehensive insurance coverage that meets Ledgers' specific requirements. These requirements include specific types of coverage and minimum liability limits. The franchisee needs to factor in the cost of these insurance policies when assessing the overall financial investment required to start and operate the franchise. Furthermore, the franchisee should be aware that these insurance requirements are not static and may be updated by Ledgers over time.
It is common practice in franchising for franchisors to mandate certain insurance coverages to protect their brand and business interests. The specific types and amounts of coverage required by Ledgers appear to be within the typical range for service-based franchises, but franchisees should carefully review these requirements with an insurance professional to ensure they obtain adequate and cost-effective coverage.