Does the Anago franchisor need to be named as an additional insured on all liability policies obtained by the subfranchisor?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
is Agreement, Subfranchisor shall deliver all Client lists and Client Accounts to Franchisor, including any and all documentation relating thereto and Subfranchisor shall have no further rights therein.
Section 3.7 - Insurance
- (a) Subfranchisor will procure and maintain in full force and effect during the Term, at Subfranchisor's sole expense, an insurance policy or policies, as required by Franchisor, including coverage protecting Subfranchisor and Franchisor, and their officers, directors, partners and employees, against any loss, liability, personal injury, death, or property damage or expense arising from Subfranchisor's obligations under this Agreement. The Subfranchisor is required to obtain insurance coverage through the Anago National Insurance program during the entire Term. All liability policies will name Franchisor as the additional insured and will provide that Franchisor will receive notice of Subfranchisor's default in payment of any premium and 30 days' prior written notice of termination, cancellation, expiration or alteration to provide less coverage. The insurance afforded by any liability policy will not be limited in any way by reason of any insurance maintained by Franchisor. Subfranchisor is responsible for payment of all deductibles, should a claim arise.
- (b) The policy or policies will be written by a licensed insurance company and will include, at a minimum, commercial general casualty insurance and general liability insurance, including products liability, property damage, owned and non-owned motor vehicle coverage, and personal injury coverage with a combined single limit of $1,000,000, with an umbrella policy of $2,000,000, unless otherwise agreed in writing by Franchisor, an "Errors and Omissions" policy with
$1,000,000 coverage as well as workers' compensation insurance for accident or disease in an amount not less than $500,000 per employee.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the subfranchisor is required to procure and maintain insurance policies that protect both the subfranchisor and Anago. Specifically, all liability policies must name Anago as an additional insured. Furthermore, Anago must receive notification if the subfranchisor defaults on any premium payments or if there are any alterations to the policy that reduce coverage, with a 30-day prior written notice required. This requirement ensures that Anago is protected from potential liabilities arising from the subfranchisor's operations.
The insurance policies that the subfranchisor obtains must include commercial general casualty insurance and general liability insurance, including products liability, property damage, owned and non-owned motor vehicle coverage, and personal injury coverage. The combined single limit for these coverages must be $1,000,000, along with an umbrella policy of $2,000,000, unless Anago agrees otherwise in writing. Additionally, the subfranchisor needs an "Errors and Omissions" policy with $1,000,000 coverage and workers' compensation insurance of at least $500,000 per employee.
Anago also specifies that all policies should list "Anago Franchising, Inc., Anago Cleaning Systems, Inc., and (Corp Name) as Additional Insured". This ensures that all relevant entities of the Anago franchise system are protected under the subfranchisor's insurance policies. The certificate holder for these policies is Anago Franchising, Inc., located in Pompano Beach, FL. These detailed insurance requirements are in place to safeguard Anago's interests and maintain consistent risk management across its franchise network.