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

According to Red Wagon Club's 2024 Franchise Disclosure Document, franchisees are required to maintain a minimum of $1,000,000 in Auto Liability coverage. This coverage must be a combined single limit and apply to all owned, non-owned, and hired vehicles used in the operation of the franchised business.

Red Wagon Club also mandates that they and any designated affiliates or lenders be named as additional insureds on all liability coverage policies. Franchisees must use an endorsement form approved by Red Wagon Club. Furthermore, the insurance policy must provide for 30 days' prior written notice to Red Wagon Club in the event of cancellation. The policy must include a waiver of subrogation rights against Red Wagon Club and its related entities, ensuring that the franchisee's coverage is primary and non-contributory to any insurance Red Wagon Club carries.

Prospective Red Wagon Club franchisees must furnish a compliant certificate of insurance to the franchisor no less than 45 days after signing the franchise agreement, but before commencing business operations. They must also provide updated certificates 20 days before any insurance renewal and whenever requested by Red Wagon Club. The insurance company and broker must be approved by Red Wagon Club.

It is important to note that Red Wagon Club's minimum insurance coverage requirements are not representations that the coverage is sufficient for the operation of the franchisee's Red Wagon Club business. Franchisees are solely responsible for obtaining adequate insurance coverage based on their own independent investigation. Red Wagon Club is not liable for losses exceeding the franchisee's insurance coverage. Red Wagon Club retains the right to establish and require participation in additional mandatory insurance programs at any time.