When must a Stretch Zone franchisee furnish a certificate of insurance if they are beginning construction of the Premises?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 9.2 EVIDENCE OF INSURANCE
At least 10 days before you begin any construction of the Premises, or 10 days from the Agreement Date, if the Premises are constructed and presently owned or leased by you, you must furnish to us a certificate of insurance issued by an approved insurance company showing compliance with these insurance requirements and a paid receipt showing the policy number. The certificate of insurance must name us as an additional insured and include a statement by the insurer that the policy will not be canceled, be subject to nonrenewal or be materially altered without at least 30 days' written notice to us. You will send to us current certificates of insurance on an annual basis. You will submit to us promptly copies of all insurance policies and proof of payment upon our request.
Source: Item 8 — Receipts. Any sale made must be in compliance with § 683(8) of the Franchise Sale Act (N.Y. Gen. Bus. L. § 680 et seq.), which describes the time period a Franchise Disclosure Document (offering prospectus) must be provided to a prospective franchisee before a sale may be made. New York law requires a franchisor to provide the Franchise Disclosure Document at the earliest of the first personal meeting or ten (10) business days before the execution of the franchise or other agreement or the payment of any consideration that relates to the franchise relationship. (FDD pages 99–263)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, if a franchisee is beginning construction of the premises, they must furnish a certificate of insurance to Stretch Zone at least 10 days before construction begins. Alternatively, if the premises are already constructed and owned or leased by the franchisee, the certificate must be provided within 10 days from the Agreement Date.
The certificate of insurance must be issued by an approved insurance company and demonstrate compliance with Stretch Zone's insurance requirements. It must also include a paid receipt showing the policy number. Furthermore, Stretch Zone must be named as an additional insured on the certificate, and the insurer must provide a statement ensuring that the policy will not be canceled, non-renewed, or materially altered without at least 30 days' written notice to Stretch Zone.
Stretch Zone also requires franchisees to submit current certificates of insurance annually and provide copies of all insurance policies and proof of payment upon request. This ensures that the franchisee maintains adequate insurance coverage throughout the term of the franchise agreement and protects both the franchisee and Stretch Zone from potential liabilities.