Legal Question in Business Law in Massachusetts

Without reading the franchise agreement, I cannot tell you. However, it would seem to me an awfully large obligation for you to carry a $10 Million unbrella and a $1 Million Theft policy in addition to your other coverage.

If your current policy covers you for claims against you for theft by your employees to a third party, meaning not your franchise, then you have met the obligation I would think.

I think the requirement is not warranted and may be an unfair action under MGL c 93A, notwithstanding anything else.

You certainly do not need coverage of up to $1 Million for theft unless required by your customers, like a museum, or a home with very expensive art collections.

I would talk to the Franchisor and see an attorney.

Ordinarily, the increase in premium from $2M to $10M is not at all expensive as virtually all of the claims are under the $2M. Talk to your agent and if he can't do better try another agent to place this coverage as the amount quoted is absurdly high.

Bringing a legal claim against the franchisor is a preposterous idea. However, if the franchise agreement purports to require you to purchase coverage from a particular insurer, that term would not be enforceable as it would constitute a "tieing arrangement" that is prohibited by anti-trust and/or franchise laws.