Does the insurance policy for an Anago subfranchisor name the franchisor as an additional insured?

According to Anago's 2025 Franchise Disclosure Document, the insurance policy for a subfranchisor must name Anago Franchising, Inc., Anago Cleaning Systems, Inc., and the subfranchisor's corporate name as additional insured. This requirement ensures that Anago is protected under the subfranchisor's insurance policies, mitigating potential risks and liabilities.

Specifically, all liability policies must include Anago as an additional insured and provide Anago with notification of any default in premium payments or any changes to the policy that reduce coverage. This provision allows Anago to monitor the subfranchisor's insurance coverage and take necessary actions to maintain adequate protection. The subfranchisor is responsible for covering all deductibles in the event of a claim.

Furthermore, Anago requires unit franchisees to obtain coverage that protects both Anago and the subfranchisor against claims, damages, or harm resulting from the unit franchise operations. If a unit franchisee fails to provide proof of coverage, Anago has the option to obtain insurance for them and charge the subfranchisor for the cost. This highlights the subfranchisor's responsibility in ensuring that all unit franchisees comply with the insurance requirements and forward proof of coverage to Anago upon request.

This requirement is a common practice in franchising, as it protects the franchisor from liabilities arising from the franchisee's operations. Prospective Anago subfranchisors should understand these insurance obligations and factor the associated costs into their financial planning.