Is Anago required to be named as an additional insured on any insurance policy obtained for an Anago franchise business?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
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;
| Additional Insured Language | |
|---|---|
| All policies shall list “Anago Franchising, Inc., Anago Cleaning | Systems, Inc., and (Corp Name) |
| as Additional Insured” |
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, Anago franchisees are required to name Anago as an additional insured on their insurance policies. Specifically, the franchisee must obtain and maintain insurance covering their Anago Unit Franchise.
The insurance policies must include 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. These policies must name Anago as an additional insured. Additionally, all policies should list "Anago Franchising, Inc., Anago Cleaning Systems, Inc., and (Corp Name) as Additional Insured".
This requirement protects Anago from potential liabilities arising from the franchisee's operations. It is also important for prospective franchisees to understand that they are responsible for payment of all deductibles should a claim arise. Furthermore, Unit Franchisees must provide proof of every required coverage and notify the Subfranchisor of any changes or lapse in coverage, or it will be considered a material default to the Franchise Agreement.