Does Ledgers require 'all risk' property insurance coverage for 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' 2025 Franchise Disclosure Document, franchisees must obtain and maintain specific insurance coverages. These requirements extend beyond what might be mandated by state laws. Ledgers requires franchisees to secure 'all risk' property insurance coverage for the assets of the franchised business.
In addition to property insurance, Ledgers mandates several other types of insurance. These include workers' compensation 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.
All insurance policies must name Ledgers as an 'additional insured' party. This requirement ensures that Ledgers is protected under the franchisee's insurance policies, offering an additional layer of security for the franchisor. Franchisees must bear the expense of obtaining and maintaining all required insurance coverage. This can represent a significant ongoing cost for the franchisee, and it is important to factor these expenses into the overall financial planning for the business.