Where in the Red Wagon Club Franchise Agreement can I find information about insurance?
Red_Wagon_Club Franchise · 2024 FDDAnswer from 2024 FDD Document
10. INSURANCE.
Franchisee must, at Franchisee's expense, comply with the requirements regarding insurance coverages that Franchisor describes in its Operations Manual from time to time. If Franchisee fails or refuses to procure and maintain the required insurance, Franchisor may (but need not) obtain such insurance on Franchisee's behalf, in which event Franchisee must cooperate with Franchisor and reimburse Franchisor for all premiums, costs and expenses Franchisor incurs in obtaining and maintaining the insurance, plus a reasonable fee for Franchisor's time incurred in obtaining such insurance. No insurance coverage that Franchisee or any other party maintains will be deemed a substitute for Franchisee's indemnification obligations to Franchisor or affiliates under Section 12.D or otherwise.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2024 FDD)
According to the 2024 Red Wagon Club Franchise Disclosure Document, details regarding insurance requirements are found in Section 10 of the Franchise Agreement. Specifically, as a Red Wagon Club franchisee, you are responsible for securing and maintaining the insurance coverages that Red Wagon Club outlines in its Operations Manual. These requirements can be modified over time.
Should you fail to obtain the necessary insurance, Red Wagon Club has the option, but not the obligation, to acquire insurance on your behalf. If Red Wagon Club chooses to do so, you must cooperate fully and reimburse Red Wagon Club for all associated costs, including premiums and any expenses incurred, along with a reasonable fee for Red Wagon Club's time spent in obtaining the insurance.
The Franchise Agreement specifies that your insurance coverage does not substitute your indemnification responsibilities to Red Wagon Club or its affiliates as described in Section 12.D. This means that even with insurance, you remain liable for certain obligations to Red Wagon Club.
It is important for prospective Red Wagon Club franchisees to carefully review Section 10 of the Franchise Agreement and the Operations Manual to understand the specific insurance requirements, potential costs, and liabilities associated with operating a Red Wagon Club franchise.