Where can a Red Wagon Club licensee find additional insurance coverage requirements?
Red_Wagon_Club Franchise · 2024 FDDAnswer from 2024 FDD Document
Throughout the Term, Licensee must carry commercially reasonable professional liability insurance for the Licensee's Law Firm Business. Licensee must also, at its expense, comply with any other insurance coverages requirements set forth in Franchisor's Operations Manual from time to time. Franchisor's insurance requirements represent only the
minimum coverage that Franchisor deems acceptable to protect its interests and are not representations or warranties of any kind that such coverage is sufficient to comply with applicable law or protect Licensee's interests or those of Licensee's Law Firm Business. It is Licensee's sole responsibility to make that determination and to acquire any additional coverages it believes are necessary to protect those interests, based on its own independent investigation.
Source: Item 23 — RECEIPTS (FDD pages 47–142)
What This Means (2024 FDD)
According to the 2024 Red Wagon Club FDD, a licensee must adhere to insurance coverage requirements. The FDD states that the licensee must comply with any other insurance coverage requirements set forth in Red Wagon Club's Operations Manual, which may be updated from time to time.
The FDD emphasizes that Red Wagon Club's insurance requirements represent only the minimum coverage the franchisor deems acceptable to protect its interests. These requirements are not representations or warranties that such coverage is sufficient to comply with applicable law or protect the licensee's interests or those of the licensee's law firm business.
It is the licensee's sole responsibility to determine if the minimum coverage is adequate and to acquire any additional coverages they believe are necessary to protect their interests, based on their own independent investigation. Failure to maintain the required insurance coverages can result in termination of the License Agreement.