What is the minimum amount of General Liability insurance required for a Punch King Fitness franchise?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
7 You must purchase insurance in the following amounts and coverage: General Liability in the amount of $1,000,000. The amounts you pay for insurance are typically non-refundable. You should inquire about the cancellation and refund policy of the insurance carrier or agent at or before the time of purchase.
The insurance will not be limited in any way because of any insurance we maintain. Maintenance of the required insurance will not diminish your liability to us under the indemnities contained in the franchise agreement. The policy or policies will insure against our vicarious liability for actual and (unless prohibited by applicable law) punitive damages assessed against you.
We may require you to increase the minimum limits of and types of coverage to keep pace with regular business practice and prudent insurance custom.
Your insurance policies must insure us, you, and our respective 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 accrue due to your operation of your Business. Your policies of insurance will contain a separate endorsement naming us and our affiliates as additional named insureds. You are required to submit an insurance certificate to our office on an
Source: Item 6 — OTHER FEES (FDD pages 10–16)
What This Means (2024 FDD)
According to Punch King Fitness's 2024 Franchise Disclosure Document, franchisees must secure General Liability insurance with a minimum coverage of $1,000,000. This insurance coverage is a standard requirement in franchising to protect both the franchisee and the franchisor from potential liabilities arising from the operation of the business.
The insurance policy obtained by the franchisee must not be limited due to any insurance that Punch King Fitness maintains. Furthermore, the franchisee's responsibility to maintain the required insurance does not reduce their liability to Punch King Fitness under the indemnification clauses in the franchise agreement. The policy should 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 related to the franchisee's business operations.
It is important to note that Punch King Fitness may increase the minimum limits and types of coverage required to align with regular business practices and prudent insurance standards. Additionally, franchisees are required to provide an insurance certificate to Punch King Fitness annually, demonstrating compliance with the insurance requirements. This ensures that the franchise remains adequately protected against potential risks and liabilities, safeguarding the interests of all parties involved.