Is Anago required to be named as an additional insured on the commercial general liability insurance policy for an Anago Unit Franchise?
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, Anago Franchising, Inc. and Anago Cleaning Systems, Inc. must be listed as additional insured parties on the commercial general liability insurance policy that Anago Unit Franchisees are required to obtain. This requirement ensures that Anago is protected against claims, damages, or harm caused by the Anago Unit Franchise operations.
The commercial general liability insurance must provide coverage of $1,000,000 per person/per occurrence for bodily injury and property damage combined, with a general aggregate of $2,000,000. In addition to naming Anago as an additional insured, all policies must be written by an insurance company reasonably satisfactory to Anago with a best rating of "A" or better.
Unit Franchisees must provide proof of every required coverage. If not insured through Subfranchisor's policy, Unit Franchisees are required to notify Subfranchisor of any changes or lapse in coverage. Failure to provide and maintain proper insurance coverage constitutes a material default of the Franchise Agreement. Anago may periodically adjust the amounts of coverage required and may require different or additional kinds of insurance at any time, including excess liability insurance, to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards, or other relevant changes in circumstances, if the changes are required throughout the System including any Company Units.