Is an Aerus franchisee required to name Aerus and its affiliates as additional named insureds on their insurance policies?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
ays must be maintained in good order and repair.
Insurance
You must obtain and maintain the amounts and types of insurance that we specify in the Manuals in connection with the operation of a Franchised Business. We currently require a minimum of $1,000,000 in coverage for all lines of insurance. The Manuals will be made available to you prior to signing the Franchise Agreement. We may periodically increase the amounts of coverage required under these insurance policies and/or require different or additional insurance coverage (including reasonable excess liability 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. These insurance policies must name us and any affiliates we designate as
additional named insureds and provide for 30 days' prior written notice to u
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 29–33)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, franchisees are required to obtain and maintain specific types and amounts of insurance coverage. The minimum coverage currently required for all lines of insurance is $1,000,000. These insurance requirements are detailed in the Manuals, which will be provided to prospective franchisees before they sign the Franchise Agreement. Aerus retains the right to periodically increase the required coverage amounts or mandate different or additional insurance coverage to reflect changes such as inflation, new risks, legal changes, or higher damage awards.
An important stipulation is that these insurance policies must name Aerus and any of its designated affiliates as additional named insureds. This protects Aerus and its affiliates from potential liabilities arising from the franchisee's business operations. Furthermore, the insurance policies must provide Aerus with 30 days' prior written notice in the event of any material modification, cancellation, or expiration of the policy. This ensures that Aerus is kept informed of any changes to the franchisee's insurance coverage that could affect their protection.
This requirement is fairly standard in franchising, as franchisors typically want to protect their brand and business interests from potential liabilities arising from franchisee operations. Prospective Aerus franchisees should carefully review the insurance requirements outlined in the Manuals and factor in the costs of obtaining and maintaining the required coverage, including naming Aerus and its affiliates as additional insureds, when evaluating the financial feasibility of the franchise.