What is the required amount of Commercial General Liability insurance coverage that Management Recruiters franchisees must obtain?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
t that the contract with a national vendor requires Franchisor to make full payment of fees directly to the national
vendor, Franchisee agrees to make payment of its pro rata share, based on the number of participating Franchisees, to Franchisor immediately on demand.
11. INSURANCE
- 11.1. Franchisee Insurance. Franchisee shall acquire and maintain, throughout the Term of this Agreement, and at its own expense, insurance coverage of the type and amounts set forth in this Section 11.
- 11.2. Coverage Requirements. Insurance coverage must comply with the requirements of the Brand Standards Materials, which Franchisor, in its sole discretion, may a
Source: Item 23 — RECEIPTS (FDD pages 67–327)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, franchisees are required to maintain Commercial General Liability insurance. This insurance must include coverage for bodily injury and property damage liability for premises and operations, contractual liability, and personal injury liability. If applicable, it should also include stop gap coverage. The minimum required amount is $1,000,000.00 for each occurrence and $2,000,000.00 as an annual aggregate.
Management Recruiters requires franchisees to maintain this coverage throughout the term of their Franchise Agreement. Franchisees are responsible for the expense of obtaining and maintaining the required insurance coverage. The franchisor may amend the coverage requirements, but will provide franchisees with 60 days written notice of any changes.
It is important to note that franchisees cannot reduce the policy limits, restrict coverage, cancel, or otherwise alter or amend these policies without Management Recruiters' prior written consent. Franchisees must also provide a certificate of insurance evidencing each policy to Management Recruiters prior to commencing New Office Training and annually within ten days of Management Recruiters' request.