Who must be named as an additional insured on all liability policies required for an Aira Fitness franchise?

According to Aira Fitness's 2025 Franchise Disclosure Document, Aira Fitness Franchising LLC and any entity with an insurable interest that Aira Fitness designates must be named as additional insureds on all required liability policies. This requirement ensures that Aira Fitness has protection under the franchisee's insurance policies for liabilities related to the Aira Fitness business, to the extent of their insurable interest.

This requirement is typical in franchising, as it protects the franchisor from potential liabilities arising from the franchisee's operations. The franchisee is responsible for securing and maintaining the necessary insurance coverage throughout the term of the Franchise Agreement. The franchisee must provide Aira Fitness with evidence of this coverage, such as a certificate or endorsement, at the commencement of the agreement and annually thereafter, or upon request.

The insurance certificate or endorsement must show all required Additional Insureds and provide that Aira Fitness will be given thirty (30) days' prior written notice of material change in or termination or cancellation of the policy. Aira Fitness also retains the right to request copies of all insurance policies. If the franchisee fails to maintain the required insurance, Aira Fitness has the right, but not the obligation, to procure insurance coverage and charge the franchisee for the costs incurred.

The franchisee should carefully review the insurance requirements outlined in the Franchise Agreement and consult with an insurance professional to ensure they obtain adequate coverage that meets Aira Fitness's requirements. It is also important to understand the implications of the waiver of subrogation clause, which prevents the insurance company from pursuing Aira Fitness for any claims they pay out on behalf of the franchisee.