When must a Red Wagon Club franchisee furnish a compliant certificate of insurance to the franchisor?

According to Red Wagon Club's 2024 Franchise Disclosure Document, a franchisee must furnish a compliant certificate of insurance to Red Wagon Club in the following instances: no less than 45 days after signing the franchise agreement, but before beginning operations of the RWC Business; 20 days prior to any renewal of insurance; and whenever Red Wagon Club requests it. The insurance company and broker must be approved by Red Wagon Club.

This requirement ensures that the franchisee has adequate insurance coverage in place before commencing business operations, maintaining continuous coverage, and complying with any specific requests from Red Wagon Club. The franchisee bears the responsibility of securing insurance coverage that meets Red Wagon Club's minimum requirements and adequately protects their own interests.

Red Wagon Club also specifies minimum coverage requirements. These include General Liability coverage of $1 million per occurrence and $2 million aggregate, Auto Liability of $1,000,000 combined single limit, and Cyber Liability of $1,000,000. Failing to procure and maintain the required insurance may allow Red Wagon Club to obtain insurance on the franchisee's behalf, with the franchisee responsible for reimbursing all premiums, costs, and expenses incurred by Red Wagon Club, plus a reasonable fee.