In the case of property insurance for an Afuri Ramen Dumpling franchise, who should be named as their interests may appear?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
8.2.3 Each insurance policy shall: (1) name Franchisor and each of its affiliates, directors, agents and employees (as may be specified by Franchisor) as additional insureds on a primary, noncontributory basis and provide a waiver of subrogation rights against Franchisor; (2) provide for 30 days' prior written notice to us of any material modification, cancellation, or expiration of the policy; and (3) provide that coverage applies separately to each insured. In the case of property insurance, the Franchisor parties shall be named as their interests may appear. Insurance carriers must be authorized to do business in the state where your Franchise Premises is located, be rated at least A-X with A.M. Best and approved by us. At our discretion, we may require you to purchase your insurance from a specific insurance carrier. Upon request, you must provide us with proof of insurance in compliance with this Agreement.
Certificates of Insurance shall name Franchisor, and each of its affiliates, directors, agents and employees (as may be specified by Franchisor) as additional insureds, and include primary, noncontributory and waiver of subrogation endorsements. Certificates shall provide 30 days' notice prior written notice to Franchisor of any material modification, cancellation, or expiration of the policy, and due in our office 30 days prior to expiration and coverages listed above.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, the franchisor parties must be named as their interests may appear in the franchisee's property insurance policy. Additionally, the franchisee's insurance policies must name Afuri Ramen Dumpling and each of its affiliates, directors, agents, and employees (as specified by the franchisor) as additional insureds on a primary, noncontributory basis and provide a waiver of subrogation rights against Afuri Ramen Dumpling.
This requirement ensures that Afuri Ramen Dumpling's interests are protected in the event of property damage or loss at the franchise location. By being named as additional insureds, Afuri Ramen Dumpling can directly file claims and receive compensation for any damages to their property or business interests. The waiver of subrogation rights prevents the insurance company from pursuing claims against Afuri Ramen Dumpling for any losses they may have caused.
Furthermore, the insurance carrier must be authorized to do business in the state where the franchise is located, have a rating of at least A-X with A.M. Best, and be approved by Afuri Ramen Dumpling. Afuri Ramen Dumpling also retains the discretion to require franchisees to purchase insurance from a specific insurance carrier. Franchisees must provide proof of insurance to Afuri Ramen Dumpling upon request, demonstrating compliance with the franchise agreement. Certificates of Insurance shall name Franchisor, and each of its affiliates, directors, agents and employees (as may be specified by Franchisor) as additional insureds, and include primary, noncontributory and waiver of subrogation endorsements. Certificates shall provide 30 days' notice prior written notice to Franchisor of any material modification, cancellation, or expiration of the policy, and due in our office 30 days prior to expiration and coverages listed above.