Who must be named as additional insureds on the insurance policies for an Afuri Ramen Dumpling franchise?
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 the 2024 Afuri Ramen Dumpling Franchise Disclosure Document, the franchisee's insurance policies must name specific parties as additional insureds. These parties include Afuri Franchise Inc. (the franchisor) and each of its affiliates, directors, agents, and employees, as may be specified by Afuri Ramen Dumpling.
This requirement ensures that the franchisor and its related parties are protected under the franchisee's insurance coverage. This protection extends to potential liabilities arising from the operation of the franchise. The insurance policy must be on a primary, noncontributory basis and provide a waiver of subrogation rights against Afuri Ramen Dumpling. This means that the franchisee's insurance will be the first to respond to any claims, and the insurance company will not have the right to seek recovery from Afuri Ramen Dumpling.
Additionally, the certificate of insurance must include primary, noncontributory, and waiver of subrogation endorsements. The franchisee must provide Afuri Ramen Dumpling with 30 days' prior written notice of any material modification, cancellation, or expiration of the policy. Certificates are due in Afuri Ramen Dumpling's office 30 days prior to expiration and coverages listed above. The insurance carriers must be authorized to do business in the state where the franchise premises is located, be rated at least A-X with A.M. Best, and approved by Afuri Ramen Dumpling. Afuri Ramen Dumpling may require the franchisee to purchase insurance from a specific insurance carrier at their discretion. Upon request, the franchisee must provide proof of insurance in compliance with the Franchise Agreement.