Franchise Must Buy from One Company?

[Mobileins]

Hey guys I have recently ran into a cretin franchise that tells its owners that they must use a cretin company for insurance. Has anyone else ever ran into this. My dad is the accountant for the guy who owns it and said when he called to get loss runs and they asked him why he would need that. They told him he need to refer to his agreement and it states he cant move. At this point I'm just moving along but am curious if anyone else has ever rant into this.

 

[nyc2phi]

Hey guys I have recently ran into a cretin franchise that tells its owners that they must use a cretin company for insurance. Has anyone else ever ran into this. My dad is the accountant for the guy who owns it and said when he called to get loss runs and they asked him why he would need that. They told him he need to refer to his agreement and it states he cant move. At this point I'm just moving along but am curious if anyone else has ever rant into this.

Yes this is common. Big franchises have a vendor list of who they can buy insurance from.

There can be some room for negotiation with the franchise depending on who they are

 

[insurance1822]

I have a friend who wrote some Serve Pro franchises that were previously with a company through Serve Pro. Not sure if they broke the rules by switching, or maybe Serve Pro doesn't have a rule like that..

 

[MrGolf]

Subway is similar here in Kentucky. They must purchase the BOP from the franchise; the WC, however, may be purchased through the independent market.