What are the specific requirements for Anago franchisees to maintain adequate insurance coverage?
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.
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, franchisees must obtain and maintain insurance coverage for their Anago unit. This includes commercial general liability insurance and completed operations coverage amounting to $1,000,000 per person/per occurrence for bodily injury and property damage combined, with a general aggregate of $2,000,000. Anago must be named as an additional insured on each policy. Franchisees also need workers' compensation insurance in accordance with state law, covering bodily injury by accident or disease, with a minimum of $500,000 for each employee. Automobile liability insurance is required for vehicles used by employees, with combined primary and excess limits of at least $100,000/$300,000, and a surety bond of $50,000.
Anago may periodically adjust the required coverage amounts and types of insurance, including potentially requiring excess liability insurance, to reflect changes like inflation, new risks, or changes in laws. These adjustments will apply system-wide, including to company-owned units. All insurance policies must be written by a company with a Best rating of "A" or better, and Anago has the right to participate in claim discussions with the franchisee's insurance company. Franchisees are responsible for covering all deductibles should a claim arise.
Anago franchisees are required to be covered under the Anago National Insurance program for the entire term of the agreement. The insurance fee is paid either to Anago or their designee, who then pays the insurance company. Insurance premiums can vary by state and may change from year to year, and the insurance plans themselves are subject to change, modification, or cancellation. Future changes to premiums and coverage will be communicated in writing. Unit Franchisees must provide proof of every required coverage and notify the Subfranchisor of any changes or lapse in coverage. Failure to do so constitutes a material default of the Franchise Agreement.