Does Amorino's insurance coverage limit the franchisee's obligation to obtain and maintain insurance?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
s, which modifications may include increasing minimum policy limits, by delivering to you written notice of the change.
- (5) Your obligation to obtain and maintain insurance shall not be limited in any way by reason of any insurance which may be maintained by Amorino, nor shall your performance of that obligation relieve you of liability under the indemnity provisions set forth in Section 11.3 of this Agreement.
- (6) All public liability and property damage policies shall contain a provision that Amorino and its Affiliates, although named as an additional insureds, shall nevertheless be entitled to recover under such policies on any loss occasioned to Amorino, or its Affiliates, partners, shareholders, officers, directors, agents, or employees by reason of your acts or omissions,
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, the franchisee's obligation to obtain and maintain insurance is not limited by any insurance that Amorino may maintain. This means that even if Amorino has its own insurance policies, the franchisee is still fully responsible for securing and maintaining the required insurance coverage as outlined in the franchise agreement.
This requirement ensures that the franchisee remains liable under the indemnity provisions of the agreement, regardless of Amorino's insurance coverage. The franchisee must fulfill their insurance obligations independently and cannot rely on Amorino's insurance to reduce their own liability. This protects Amorino by ensuring franchisees maintain adequate coverage for potential liabilities arising from their operations.
Amorino also has the right, but not the obligation, to procure insurance on behalf of the franchisee if the franchisee fails to maintain the minimum insurance requirements. If Amorino exercises this right, the franchisee is responsible for reimbursing Amorino for the cost of the premium upon demand. This provision ensures continuous coverage and protects Amorino from potential liabilities resulting from a franchisee's failure to maintain adequate insurance.