Who must 1 800 Packouts franchisees name as additional insureds on their insurance policies?

According to 1 800 Packouts's 2025 Franchise Disclosure Document, franchisees are required to name 1 800 Packouts and its officers, directors, and employees as additional insureds on all required insurance policies. This requirement ensures that 1 800 Packouts has protection under the franchisee's insurance coverage for potential liabilities related to the franchised business.

This requirement is a standard practice in franchising, as it protects the franchisor from vicarious liability and ensures that the franchisor has a direct avenue for recovery in case of a claim. The insurance policies must also contain a waiver by the insurance carrier of all subrogation rights against 1 800 Packouts, preventing the insurance company from pursuing claims against the franchisor. Additionally, 1 800 Packouts must receive 30 days' advance written notice of any termination, expiration, cancellation, or modification of the insurance policies.

1 800 Packouts may modify the minimum insurance requirements from time to time, including increasing the minimum amount of coverage or requiring different or additional kinds of insurance. These changes may be due to factors such as inflation, identification of new risks, changes in law or standards of liability, or higher damage awards. Franchisees can find a detailed list of the minimum insurance requirements in the 1 800 Packouts' Manuals, which are subject to change.

Prospective franchisees should carefully review the insurance requirements outlined in the Franchise Agreement and the Manuals to understand the full scope of their insurance obligations. It is also advisable to consult with an insurance professional to ensure that they obtain the necessary coverage and comply with all requirements set forth by 1 800 Packouts.