How often must a Stretch Zone franchisee send current certificates of insurance to the franchisor?
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, a franchisee is required to send current certificates of insurance to Stretch Zone on an annual basis. This ensures that Stretch Zone remains informed about the franchisee's insurance coverage and that the coverage remains active and compliant with the franchise agreement.
Specifically, the franchisee must initially furnish a certificate of insurance to Stretch Zone at least 10 days before beginning any construction on the premises, or within 10 days from the Agreement Date if the premises are already constructed. This initial certificate must be issued by an approved insurance company and include a paid receipt showing the policy number. It must also name Stretch Zone as an additional insured and include a statement from the insurer that the policy will not be canceled, subject to nonrenewal, or materially altered without at least 30 days' written notice to Stretch Zone.
Maintaining adequate insurance is a standard requirement in franchising to protect both the franchisee and franchisor from potential liabilities and financial losses. The annual submission of updated certificates ensures continuous compliance and allows Stretch Zone to verify that the franchisee's insurance coverage remains in effect and meets the required standards.