What statement must be included by the insurer on the certificate of insurance provided by a Stretch Zone franchisee?
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, the certificate of insurance provided by a franchisee must include a specific statement from the insurer. This statement must declare that the insurance policy will not be canceled, subjected to nonrenewal, or materially altered without providing Stretch Zone with at least 30 days' advance written notice.
This requirement ensures that Stretch Zone is promptly informed of any changes to the franchisee's insurance coverage that could affect their liability protection. By being named as an additional insured on the policy, Stretch Zone can also directly benefit from the coverage in certain situations.
It is the franchisee's responsibility to furnish this certificate to Stretch Zone at least 10 days before starting any construction on the premises or, if the premises are already constructed, within 10 days of the franchise agreement date. Additionally, franchisees must provide current certificates annually and submit copies of all insurance policies and proof of payment upon Stretch Zone's request. This ensures ongoing compliance with the insurance requirements outlined in the franchise agreement.