Who must be protected by the insurance policy or policies that Amorino franchisees are required to maintain?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
m that we provide, in a conspicuous place in the Store as determined by Amorino and you.
B. Insurance Obligations.
- (1) You shall maintain in full force and effect at all times during the term of this Agreement, at your expense, an insurance policy or policies protecting you, Amorino and its Affiliates, and their respective partners, shareholders, directors, agents, and employees, against any demand or claim with respect to personal and bodily injury, death, or property damage, or any loss, liability, or expense arising or occurring upon or in connection with the operation of the Store and the Franchised Business.
- (2) Such policy or policies shall: (a) be written by insurer(s) licensed and admitted to write coverage in the state in which the Franchised Business is located and with a rating of "A" or better as set forth in the most recent edition of Best's Key Rating Guide; (b) name Amorino and its Affiliates, and their partners, officers, subsidiaries, Affiliates, shareholders, directors, regional directors, agents, and employees as additional insureds on a primary noncontributory basis to the general liability policy and the auto liability policy, (c) the additional insured coverage must be provided on an Additional Insured Grantor of Franchise Endorsement form CG2029 (or an endorsement form with comparable wording acceptable to
Amorino); and (d) comply with Amorino's written requirements at the time such policies are obtained, and provide at least the types and minimum amounts of coverage specified below or as described within Amorino's written notice to you.
- (3) Such policies shall include, at the minimum, the following policies: (a) "all risk" or "special" property insurance covering all real and personal property and equipment on a replacement costs basis, including business interruption and extra expense insurance; (b) comprehensive commercial general liability insurance in an amount of not less than the following combined single limits: $2,000,000 general aggregate, $2,000,000 products/completed operations aggregate, $1,000,000 each occurrence, $1,000,000 personal and advertising injury, $50,000 fire damage legal liability, and $5,000 medical expense limit (any one person);
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, franchisees are required to maintain insurance policies that protect multiple parties. These policies must protect the franchisee, Amorino and its affiliates, as well as their respective partners, shareholders, directors, agents, and employees. The insurance coverage is intended to cover any demand or claim related to personal and bodily injury, death, property damage, loss, liability, or expense that arises from the operation of the Amorino store and franchised business.
Amorino also requires that they and their Affiliates, along with their partners, officers, subsidiaries, shareholders, directors, regional directors, agents, and employees, be named as additional insureds on a primary noncontributory basis on both the general liability and auto liability policies. This ensures that Amorino is directly protected under the franchisee's insurance policies and can make claims directly without relying solely on the franchisee's coverage. The additional insured coverage must be provided on an Additional Insured Grantor of Franchise Endorsement form CG2029 (or an endorsement form with comparable wording acceptable to Amorino).
During construction, franchisees must maintain general liability and property damage insurance that protects the franchisee, Amorino, and its Affiliates as additional insureds under the policy. This insurance must provide contractual indemnification coverage for the franchisee and Amorino's respective partners, members, shareholders, directors, managers, officers, agents, and employees. The policy must be written by an insurer acceptable to Amorino and include a waiver of subrogation in favor of Amorino and its Affiliates, and their respective partners, members, shareholders, directors, managers, officers, agents, and employees. Declaration pages for the policy must be provided to Amorino before construction begins.