Who must be named as additional insureds on all insurance policies required for a 1 800 Packouts franchise?

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

This is a common practice in franchising, as it protects the franchisor from vicarious liability and ensures they are covered in the event of a claim arising from the franchisee's operations. The franchisee is also required to provide 1 800 Packouts with copies of certificates or other evidence of insurance procurement, renewal, or extension within 30 days of the execution of the Franchise Agreement and annually thereafter.

Furthermore, the insurance policies must contain a waiver by the insurance carrier of all subrogation rights against 1 800 Packouts. This prevents the insurance company from pursuing claims against 1 800 Packouts to recover any payments made on a claim. The policies must also provide 1 800 Packouts with 30 days' advance written notice of termination, expiration, cancellation, or modification of any policy, allowing the franchisor time to ensure continuous coverage.