Franchise Must Buy from One Company?

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.
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