What minimum rating must the insurance company providing coverage for an Anago Unit Franchise have?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
, home address and telephone number within 10 days of the change. You release Us and Our officers, directors, stockholders, agents and legal successors and assigns from all causes of action, suits, debts, covenants, agreements, damages, judgments, claims and demands, in law or in equity, that You ever had, now have, or that You later may have from Our disclosure of Your name, home address and telephone number.
ARTICLE 9 - INSURANCE
SECTION 9.1 TYPES AND AMOUNTS OF COVERAGE.
You must obtain and maintain insurance, covering Your Anago Unit Franchise, at Your expense, as We require, in addition to all other insurance that may be required by applicable law, Your landlord, lender or otherwise. You are responsible for payment of all deductibles, should a claim arise. All policies must be written by an insurance company reasonably satisfactory to Us with a best rating of "A" or better, and must include at a minimum:
- (a) Commercial general liability insurance and completed operations coverage in the amount of $1,000,000 per person/per occurrence for bodily injury and property damage combined with a general aggregate of $2,000,000, and naming Us as an additional insured in each policy;
- (b) Workers' compensation insurance in acc
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, all insurance policies obtained by a Unit Franchisee must be written by an insurance company reasonably satisfactory to Anago. The insurance company must have a "best rating" of "A" or better.
This requirement ensures that the insurance coverage is provided by a reputable and financially stable company, reducing the risk that the insurer will be unable to meet its obligations in the event of a claim. Anago also requires to be named as an additional insured in each policy.
Prospective franchisees should confirm that they can obtain insurance coverage from a company meeting this rating requirement and factor the cost of such coverage into their financial projections. It is also important to understand what insurance companies are pre-approved by Anago to ensure compliance.