Who is responsible for the cost of insurance coverage required by the Red Wagon Club franchise agreement?
Red_Wagon_Club Franchise · 2024 FDDAnswer from 2024 FDD Document
- (b) Insurance. 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 Franchise Disclosure Document, the licensee is responsible for the cost of insurance coverage. The licensee must maintain commercially reasonable professional liability insurance for their law firm business throughout the term of the agreement.
Additionally, the licensee is obligated to comply with any other insurance coverage requirements detailed in Red Wagon Club's Operations Manual, and the licensee bears the expense for these coverages. Red Wagon Club states that its insurance requirements are the minimum deemed acceptable to protect its interests.
The Red Wagon Club does not represent or warrant that this minimum coverage is sufficient to comply with applicable law or protect the licensee's interests or those of the licensee's law firm. It is the licensee's sole responsibility to determine if additional coverage is necessary through their own independent investigation and to acquire any additional coverages to protect those interests.