Who must the comprehensive general liability insurance policy obtained by a Pearce Bespoke franchisee insure?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
s products at whatever prices Franchisee determines.
You must purchase and maintain, at your expense, comprehensive general liability insurance in an amount Pearce Bespoke will designate periodically, but at least $1,000,000 per occurrence and $2,000,000 in the aggregate. Thisinsurance must insure Pearce Bespoke, you and any other person Pearce Bespoke designates from liability for all damage or injury. You must also purchase business interruption insurance, business personal property insurance, money, and securities insurance, and building insurance (if applicable). In addition, you must maint
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–20)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, franchisees are required to secure comprehensive general liability insurance. This insurance policy must provide coverage for Pearce Bespoke itself, the franchisee, and any other individuals or entities that Pearce Bespoke designates.
The minimum coverage amounts for this liability insurance are $1,000,000 per occurrence and $2,000,000 in the aggregate. In addition to general liability coverage, franchisees must also obtain business interruption insurance, business personal property insurance, money and securities insurance, and building insurance (if applicable). Franchisees are also responsible for maintaining any other insurance policies mandated by law.
This requirement ensures that Pearce Bespoke and its franchisees are protected from potential financial losses resulting from lawsuits or other claims. The franchisor's inclusion in the franchisee's liability coverage is a common practice in franchising, as it shields the brand from vicarious liability for the franchisee's actions. Prospective franchisees should carefully review the insurance requirements and associated costs to factor them into their overall investment and operating expenses.