Must 1 800 Packouts be named as an additional insured on all insurance policies?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
You must maintain these policies during the entire term of your Franchise Agreement. We may increase or decrease the amounts of coverage required under these insurance policies and require different or additional kinds of insurance at any time to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards or other relevant changes in circumstances. All insurance policies must name us (and our officers, directors and employees) as additional insureds, contain a waiver by the insurance carrier of all subrogation rights against us, and must provide that we will receive 30 days advance written notice of any material modification, cancellation, or termination or expiration of the policy. You must provide us with a copy of the certificate of or other evidence of the procurement, renewal or extension of each insurance policy within 30 days after signing the Franchise Agreement and each year thereafter.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 27–29)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, franchisees are required to name 1 800 Packouts (including its officers, directors, and employees) as additional insureds on all insurance policies. This requirement ensures that 1 800 Packouts is protected against potential liabilities arising from the franchisee's operations.
In addition to being named as an additional insured, the insurance policies must also contain a waiver by the insurance carrier of all subrogation rights against 1 800 Packouts. This waiver prevents the insurance company from pursuing claims against 1 800 Packouts to recover any payments made to the franchisee due to a covered loss. Furthermore, the insurance policies must provide 1 800 Packouts with 30 days' advance written notice of any material modification, cancellation, termination, or expiration of the policy. This notification period allows 1 800 Packouts time to ensure continuous coverage and address any potential gaps in insurance protection.
To ensure compliance, franchisees must provide 1 800 Packouts with a copy of the certificate or other evidence of the procurement, renewal, or extension of each insurance policy within 30 days after signing the Franchise Agreement and each year thereafter. This documentation allows 1 800 Packouts to verify that the franchisee maintains the required insurance coverage throughout the term of the agreement. These stipulations are typical in franchising, as they protect the brand and the franchisor from liabilities related to franchisee operations.