Can 1-800-GOT-JUNK? change the insurance requirements during the term of the franchise agreement?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
You must obtain and maintain at all times during the term of your franchise the types of insurance policies or coverage and the minimum policy limits or maximum deductibles of any policy as specified in the Operations Manual (“Coverages”), which are apt to change from time-to-time. You must also maintain at all times all insurance policies as required by the law in which your Franchised Business is operated. You must name us and our affiliates, agents, representatives, shareholders, directors, officers and employees as additional insureds on all policies of insurance, and include a waiver of subrogation against these additional insureds. The following are our current minimum requirements for Coverages:
Type Coverage Comprehensive Liability Not less than $2,000,000 per occurrence Business Interruption As required by Franchisor Vehicle Liability Not less than $1,000,000 or as required by Franchisor Employer’s Liability Insurance As required by Franchisor; not less than $1,000,000 Umbrella Coverage Not less than $2,000,000 Worker’s Compensation As required by state law Primary and Noncontributory Endorsement
Blanket Contractual Liability Endorsement
Other As required by Franchisor
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 21–23)
What This Means (2025 FDD)
According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, the insurance requirements may change during the franchise term. Franchisees must obtain and maintain the types of insurance policies or coverage with the minimum policy limits or maximum deductibles as specified in the Operations Manual. These coverages are subject to change. Franchisees must also maintain all insurance policies required by law in the state where they operate their 1-800-GOT-JUNK? business.
1-800-GOT-JUNK? requires franchisees to name 1-800-GOT-JUNK? and its affiliates, agents, representatives, shareholders, directors, officers, and employees as additional insureds on all insurance policies. Additionally, franchisees must include a waiver of subrogation against these additional insureds. The current minimum coverage requirements include comprehensive liability (not less than $2,000,000 per occurrence), business interruption (as required by 1-800-GOT-JUNK?), vehicle liability (not less than $1,000,000 or as required by 1-800-GOT-JUNK?), employer’s liability insurance (as required by 1-800-GOT-JUNK?; not less than $1,000,000), umbrella coverage (not less than $2,000,000), and worker’s compensation (as required by state law).
These insurance requirements are typical in franchising, as franchisors need to protect their brand and network from potential liabilities. The ability to change insurance requirements allows 1-800-GOT-JUNK? to adapt to changing legal and business environments. For a prospective franchisee, this means that insurance costs could fluctuate over the term of the agreement, and it's important to factor in potential increases when budgeting. Franchisees should discuss with 1-800-GOT-JUNK? how frequently these changes occur and what factors might trigger them to better anticipate future costs.