What is the minimum required aggregate General Liability coverage for a Red Wagon Club franchise?

According to Red Wagon Club's 2024 Franchise Disclosure Document, franchisees must maintain a minimum of $2 million in aggregate General Liability coverage. This coverage is intended to protect both the franchisee and Red Wagon Club from potential claims of bodily injury and property damage that may occur during the operation of the franchise. Additionally, the General Liability coverage must include $1 million per occurrence, $1,000,000 Products/Completed Operations, and $1,000,000 Personal Injury & Advertising Injury.

Red Wagon Club also requires that each insurance policy for liability coverage names Red Wagon Club and any affiliates or lenders they designate as additional named insureds. The policy must provide for 30 days' prior written notice to Red Wagon Club of a policy's cancellation and contain a waiver of all subrogation rights against Red Wagon Club, its subsidiaries, affiliates, and their successors and assigns. The coverage shall be primary and non-contributory to any insurance that Red Wagon Club carries. Franchisees must furnish Red Wagon Club with a compliant certificate of insurance no less than 45 days after signing the franchise agreement, but before beginning operations, and 20 days prior to any renewal of insurance or whenever Red Wagon Club requests.

It is important to note that Red Wagon Club emphasizes that these minimum insurance requirements are not representations or warranties that the coverage is sufficient for the operation of the franchisee's Red Wagon Club Business. The franchisee is solely responsible for obtaining adequate insurance coverage based on their own independent investigation. Red Wagon Club is not responsible for losses that exceed or circumvent the insurance coverage under any circumstances and may, at any time, establish and require participation in additional mandatory insurance programs.