What are the requirements for Anago franchisees to procure and maintain Workers' Compensation Insurance?
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;
- (c) Automobile liability insurance. You agree to require that vehicles used by Your employees in the Anago Unit Franchise as well as yourself have coverage, with a combination of primary and excess limits of at least $100,000/$300,000;
- (d) Surety bond of $50,000; and
- (e) All other insurance, and in the amounts, We reasonably require for Our and Your protection.
We may periodically adjust the amounts of coverage required under the insurance policies and 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. (See Exhibit 10)
SECTION 9.2 EVIDENCE OF INSURANCE.
We may periodically adjust the amounts of coverage required under the insurance policies and 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. (See Exhibit 10) We must be named as an additional insured to any insurance policy you obtain for Your Business.
SECTION 9.3 OUR RIGHT TO PARTICIPATE IN CLAIMS PROCEDURE.
We, or Our insurer, have the right to participate in discussions with Your insurance company or any claimant (with Your insurance company) regarding any claim.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, franchisees must obtain and maintain workers' compensation insurance in accordance with state law. This insurance must cover bodily injury by accident or disease, with a minimum coverage of $500,000 for each employee. No employee of an Anago Unit Franchise is permitted to enter a client's building unless covered by Workers' Compensation Insurance.
Unit franchisees must provide proof of every required coverage. If not insured through the Subfranchisor's policy, franchisees must notify the Subfranchisor of any changes or lapses in coverage, with failure to do so constituting a material default of the Franchise Agreement. Certificates of Insurance and Declarations Pages typically will not list all of the coverages required by the Subfranchisor. Upon request, Franchisees may need to provide copies of the entire insurance policy, including all endorsements, in order to provide evidence that they meet all of the above requirements.
Anago may periodically adjust the required coverage amounts 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. If a franchisee fails to maintain the required insurance, Anago has the right (but not the obligation) to procure the insurance and charge the franchisee for the cost, plus interest at the maximum rate permitted by law, and a reasonable fee for expenses.
Anago also makes available to franchisees insurance coverage through group or master policies, including workers' compensation, which franchisees may participate in at their own expense. Anago may charge a reasonable fee for administering any group insurance program. All policies shall list "Anago Franchising, Inc., Anago Cleaning Systems, Inc., and (Corp Name) as Additional Insured".