When must a Mrcool franchisee furnish a certificate of insurance to the franchisor?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
- Insurance – You must obtain the insurance coverage that we require from time to time as presently disclosed in the Manuals and as we may modify. All insurance policies required under your Franchise Agreement and as set forth in the Franchise Agreement must be written by a responsible carrier, reasonably acceptable to us and all insurance (excluding workers' compensation) must name us, our officers, directors, shareholders, partners, agents, representatives and independent contractors as additional insureds. The insurance policies must include a provision that the insurance carrier must provide us with no less than 30 days' prior written in the event of a material alteration to, or cancellation of, any insurance policy. A certificate of insurance must be furnished by you to use at the earlier of 90 days after the Effective Date of the Franchise Agreement or prior to the commencement of our initial training program. Insurance coverage must be at least as comprehensive as the minimum requirements set forth in the chart below and in the Franchise Agreement (Franchise Agreement, Article 8). You must consult your carrier representative to determine the level of coverage necessary for the Franchised Business. Higher exposures may require higher limits.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 23–26)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, a franchisee must furnish a certificate of insurance to Mrcool at the earlier of two dates: 90 days after the effective date of the Franchise Agreement, or prior to the commencement of the initial training program.
This requirement ensures that Mrcool franchisees have adequate insurance coverage in place before they begin operating their franchise. The insurance policies must be written by a responsible carrier, reasonably acceptable to Mrcool. Furthermore, all insurance policies (excluding workers' compensation) must name Mrcool, its officers, directors, shareholders, partners, agents, representatives, and independent contractors as additional insureds. This protects Mrcool from potential liabilities arising from the franchisee's operations.
The insurance carrier must provide Mrcool with no less than 30 days' prior written notice in the event of a material alteration to, or cancellation of, any insurance policy. This allows Mrcool to ensure continuous coverage and address any potential gaps in insurance. The franchisee is responsible for consulting with their insurance representative to determine the necessary level of coverage for their specific business, as higher exposures may require higher limits. Mrcool also specifies minimum insurance coverage requirements in the Franchise Agreement.