Is an Anago subfranchisor responsible for monitoring the Unit Franchisee compliance with the insurance requirements?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) Subfranchisor must require all Unit Franchisees to obtain coverage of the types and amounts as required by Franchisor, protecting Franchisor and Subfranchisor against any and all claims, damages or harm caused by the Unit Franchise operations. Franchisor will at its option obtain insurance for any and all Unit Franchisees that do not produce proof of coverage and charge Subfranchisor for that coverage. Subfranchisor agrees that it shall be solely responsible to monitor the Unit Franchisee compliance with the insurance requirements and will forward any and all proof of coverage to Franchisor at its request.
IMPORTANT
Unit Franchisees must provide proof of every required coverage. If you are not insured through Subfranchisor's policy or policies, you are required to notify Subfranchisor of any changes or lapse in coverage of your policy or policies. Failure to do so is a material default to your Franchise Agreement. Certificates of Insurance and Declarations Pages typically will not list all of the coverage's required by Subfranchisor. Upon request, Franchisees may need to provide copies of the entire insurance policy, including all endorsements, in order to provide evidence of that they meet all of the above requirements.
Additional Insured Language
All policies shall list "Anago Franchising, Inc., Anago Cleaning Systems, Inc., and (Corp Name) as Additional Insured"
Certificate Holder
Anago Franchising, Inc. 20 SW 27th Ave. Suite 300 Pompano Beach, FL 33069
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the subfranchisor is responsible for monitoring the Unit Franchisee's compliance with insurance requirements. The subfranchisor must ensure that all Unit Franchisees obtain the required insurance coverage types and amounts mandated by Anago, protecting both Anago and the subfranchisor from claims, damages, or harm resulting from the Unit Franchise operations.
The subfranchisor's responsibilities include forwarding any proof of coverage from Unit Franchisees to Anago upon request. If a Unit Franchisee fails to provide proof of coverage, Anago has the option to obtain insurance for the Unit Franchisee and charge the subfranchisor for the coverage costs.
Unit Franchisees are required to provide proof of every required insurance coverage. They must notify the subfranchisor of any changes or lapses in their coverage if they are not insured through the subfranchisor's policy. Failure to do so constitutes a material default of their Franchise Agreement. Certificates of Insurance and Declarations Pages may not list all required coverages, and franchisees may need to provide copies of their entire insurance policy, including all endorsements, to demonstrate compliance. All policies must list "Anago Franchising, Inc., Anago Cleaning Systems, Inc., and (Corp Name) as Additional Insured", with Anago Franchising, Inc. listed as the Certificate Holder.