Does the Alloy franchise agreement specify who else besides Alloy and its affiliates can be designated by name on the insurance policy?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
able law, but not less than $500,000, (ix) other insurance required by the state or locality in which your Franchised Business is located and operated or as may be required by the lease or mortgage for the premises. If you are a multi-unit developer, we recommend that you purchase; ( ix) an umbrella liability insurance; (x) automobile liability insurance; (xi) "Per Location" aggregate limits when multiple facility locations are insured under one comprehensive general liability and umbrella liability policy; (xii) Alloy Personal Training, LLC and its affiliates are named as additional insureds on all liability policies required by this subparagraph; (xiii) severability of interests and/or separation of insureds provisions must be included in the liability policies and an endorsement is required providing that the franchisee's insurance is primary with respect to any insurance policy carried by Alloy Personal Training, LLC and its affiliates and any insurance maintained by Alloy Personal Training, LLC or its affiliates is excess and non-contributing; (xiv) a waiver of subrogation endorsement must be obtained; and (xv) any other such insurance coverages or amounts as we may designate or as required by law or other agreement related to the Facility.
The insurance coverages referenced in (iii), (iv), (vi), (vii), (viii), (ix), (x), (xi), (xii) and (xiii) must commence as of the date you sign this Agreement. The insurance coverages referenced in (i), (ii) and (v) of this subparagraph must commence as of the date construction begins at the Facility. You must deliver to us at commencement and annually or at our request a proper certificate evidencing the existence of such insurance coverage and your compliance with the provisions of this subparagraph. The insurance certificate must show our status as an additional insured and provide that we will be given 30 days' prior written notice of a material change in or
termination or cancellation of the policy. We also may request copies of all policies. We may from time to time modify the required minimum limits and require additional insurance coverages, by providing written notice to you, as conditions require, to reflect changes in relevant circumstances, industry standards, experiences in the ALLOY system, standards of liability and higher damage awards.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, if you are a multi-unit developer, Alloy Personal Training, LLC and its affiliates must be named as additional insureds on all liability policies. The document also states that you must purchase other insurance required by the state or locality in which your Franchised Business is located and operated or as may be required by the lease or mortgage for the premises.
This means that in addition to Alloy and its affiliates, other entities may need to be named on the insurance policy depending on local laws, lease agreements, or mortgage requirements. It is the franchisee's responsibility to ensure these requirements are met and to provide Alloy with a certificate evidencing the insurance coverage.
This requirement is fairly standard in franchising, as franchisors typically want to protect themselves from liability related to the franchisee's operations. The franchisee should carefully review their lease and mortgage agreements, as well as local laws, to determine if any additional parties need to be named as insureds on their insurance policies. Franchisees should consult with their insurance broker to ensure they have adequate coverage and are in compliance with all requirements.