What is the required amount of commercial general liability insurance and completed operations coverage that an Anago franchisee must maintain, and does it require naming Anago as an additional insured?
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 accordance with state law covering bodily injury by accident or disease in an amount not less than $500,000 for each employee;
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, franchisees are required to maintain specific insurance coverage for their Anago Unit Franchise. This insurance must cover commercial general liability and completed operations with a minimum of $1,000,000 per person/per occurrence for bodily injury and property damage combined, along with a $2,000,000 general aggregate.
Anago requires that it be named as an additional insured on each of the franchisee's insurance policies. The policies must be written by an insurance company that is reasonably satisfactory to Anago, with a minimum rating of "A" or better. The franchisee is responsible for covering all deductibles should any claims arise.
Anago retains the right to periodically adjust the required coverage amounts and may also mandate different or additional types of insurance. These adjustments could be due to factors such as inflation, the identification of new risks, changes in laws or liability standards, or higher damage awards. These changes will be system-wide, applying to both franchisees and company-owned units. Unit Franchisees must provide proof of every required coverage. All policies shall list "Anago Franchising, Inc., Anago Cleaning Systems, Inc., and (Corp Name) as Additional Insured".