Who must the Alloy franchisee's insurance policy insure, besides the franchisee?

According to Alloy's 2025 Franchise Disclosure Document, the franchisee's insurance policy must insure not only the franchisee but also Alloy Personal Training, LLC, its affiliates, and any other persons designated by Alloy. This requirement ensures that Alloy and its related entities are protected from potential liabilities arising from the franchisee's operations.

For a prospective Alloy franchisee, this means bearing the cost of insurance coverage that extends beyond their own business to include the franchisor. The specific standards, specifications, and minimum coverage amounts for the insurance policies are set forth in writing by Alloy and may be modified over time. The franchisee is responsible for maintaining this insurance coverage throughout the term of the franchise agreement.

The required insurance includes various types of coverage, such as special causes of loss coverage, business interruption insurance, comprehensive general liability insurance ($1,000,000 per occurrence and $2,000,000 aggregate), personal and advertising injury insurance ($2,000,000 per occurrence), fire damage coverage, medical expense coverage ($10,000 to $25,000), workers' compensation insurance, and employer's liability insurance ($500,000 minimum). Additionally, multi-unit developers are recommended to purchase umbrella liability insurance and automobile liability insurance. The franchisee must provide Alloy with certificates evidencing the insurance coverage and any changes to the policy, ensuring that Alloy remains informed and protected.