Are insurance payments typically refundable for a Punch King Fitness franchise?

According to Punch King Fitness's 2024 Franchise Disclosure Document, insurance payments are typically non-refundable. The FDD advises prospective franchisees to inquire about the cancellation and refund policy of the insurance carrier or agent before or at the time of purchase. This is important for franchisees to understand, as it means that if they cancel their insurance policy, they may not receive a refund for the unused portion of the premium.

This non-refundability is a standard practice in many franchise systems, as insurance coverage is provided for a specific term, and the premium is calculated based on that term. However, it is crucial for franchisees to clarify the specific terms and conditions of their insurance policies to avoid any surprises.

Punch King Fitness franchisees are required to maintain specific insurance coverage, including General Liability insurance in the amount of $1,000,000. The franchisee is responsible for ensuring that the insurance policies cover Punch King Fitness, its affiliates, subsidiaries, owners, officers, directors, partners, members, employees, servants, and agents against any loss, liability, products liability, personal injury, death, or property damage that may occur due to the operation of the Business. Franchisees must also submit an insurance certificate to Punch King Fitness on an annual basis.