When must a Nothing Bundt Cakes franchisee deliver a complete copy of their then-prevailing policy of insurance?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
All insurance providers must have a Best's Insurance Guide minimum rating of A-VI or better. You must maintain any additional insurance required by your landlord or under applicable law. You must furnish us with certificates of insurance (or, at our request, copies of all insurance policies), evidencing the existence and continuation of the insurance coverage required by the Franchise Agreement. All policies must contain a waiver of subrogation in our favor, and must name us, and any additional parties we designate, as additional insureds, at your cost except with regards to workers' compensation insurance. Under each insurance policy, we must receive at least 30 days' prior written notice of any intent to reduce
policy limits, restrict coverage, cancel or otherwise alter or amend said policy. Once obtained, you may not reduce the policy limits, restrict coverage, cancel or otherwise alter or amend the insurance policies without our written consent. You must submit proof of insurance before you begin making leasehold improvements and deliver a complete copy of your then-prevailing policy of insurance within 30 days following the delivery of the certificate of insurance.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 36–40)
What This Means (2025 FDD)
According to the 2025 Nothing Bundt Cakes Franchise Disclosure Document, a franchisee must deliver a complete copy of their then-prevailing insurance policy within 30 days following the delivery of the certificate of insurance. This requirement is in addition to furnishing certificates of insurance to Nothing Bundt Cakes, evidencing the existence and continuation of the required insurance coverage as per the Franchise Agreement.
Nothing Bundt Cakes also stipulates that all insurance providers must have a Best's Insurance Guide minimum rating of A-VI or better. The franchisee is responsible for maintaining any additional insurance required by their landlord or under applicable law. All policies must contain a waiver of subrogation in favor of Nothing Bundt Cakes and must name Nothing Bundt Cakes, and any additional parties they designate, as additional insureds, except with regards to workers' compensation insurance.
Furthermore, Nothing Bundt Cakes requires at least 30 days' prior written notice of any intent to reduce policy limits, restrict coverage, cancel, or otherwise alter or amend the insurance policy. Once obtained, the franchisee cannot reduce the policy limits, restrict coverage, cancel, or otherwise alter or amend the insurance policies without Nothing Bundt Cakes' written consent. The franchisee must also submit proof of insurance before beginning leasehold improvements.
These insurance requirements are typical in franchising, as they protect the franchisor from potential liabilities and ensure that the franchisee has adequate coverage to operate the business. Prospective Nothing Bundt Cakes franchisees should carefully review these requirements and consult with an insurance advisor to ensure they can meet these obligations.