factual

Is Sunoco required to be included as an additional insured on all insurance policies for an Aplus franchise?

Aplus Franchise · 2024 FDD

Answer from 2024 FDD Document

erage for the replacement cost value of all Sunoco's property described in Section 2.01, including the "Premises" and "Loaned Equipment", as defined in this Lease.

Additional Insurance Coverages

  • (5) If you conduct motor vehicle service or repairs at the Premises you shall have the following additional insurance coverages:
    • (a) GARAGEKEEPERS LEGAL LIABILITY INSURANCE coverage for all automobiles with minimum limits of $100,000 per occurrence.
    • (b) GARAGE LIABILITY INSURANCE coverage for bodily injury and property damage with minimum limits of at least $500,000 combined single limit per occurrence.
    • (c) AUTOMOBILE LIABILITY INSURANCE coverage both bodily injury and property damage with minimum limits of at least $500,000 combined single limit per occurrence.

NOTE: SUNOCO MUST BE INCLUDED AS AN ADDITIONAL INSURED AND LOSS PAYEE ON ALL INSURANCE POLICIES.

FOR TURNPIKE LOCATIONS, THE APPLICABLE TURNPIKE AUTHORITY AND CONCESSIONAIRE SHALL BE INCLUDED AS AN ADDITIONAL INSURED AND LOSS PAYEE ON ALL INSURANCE POLICIES.

  • (H) You shall provide to Sunoco before commencement of this Agreement a certificate or other appropriate evidence of insurance coverage as above required, satisfactory to Sunoco, and a renewal certificate of such policy shall be furnished to Sunoco before each policy renewal date. Each certificate shall include a provision that such policies may not be canceled or materially changed without at least thirty (30) days' prior written notice to Sunoco. You shall keep such insurance coverage in full force and effect during your Franchise relationship with Sunoco.
  • (I) Your failure to maintain required insurance coverage, and to pay the premiums and renewal premiums of all such policies of insurance as they become due and payable, and to deliver all such certificates of insurance and renewals thereof or duplicate originals to Sunoco within the time required, shall constitute a material default by you under the terms of this Agreement. Additionally, if, after written notice from Sunoco, the required certificates of insurance are not provided within the time set forth in the notice, in addition to the immediate suspension of deliveries of Motor Fuels as provided in Section 2.10 of your Motor Fuel Supply Agreement, this Lease may be terminated.

1.27 Sunoco's Right of Entry and Inspection

  • (A) Sunoco, including its representatives and contractors, shall have full unrestricted rights of ingress and egress to the Premises at any time during normal business hours, for purposes of: (1) conducting inspections and maintenance of Premises and Loaned Equipment; (2) to engage in the audit, examination, and inventory of your merchandise, Motor Fuels, and accounting records, as provided herein; (3) to determine your compliance with this Lease; and (4) as otherwise necessary to exercise Sunoco's rights, options, and privileges under this Lease, including access for purposes of remedying any default or omission by you.
  • (B) Sunoco is not liable to you for interruption of business or loss of profits resulting from Sunoco's exercise, in a reasonable manner, of its rights, options, and privileges under this Lease.
  • (C) Sunoco also reserves the right to enter the Premises to reconstruct or modernize the Premises. This right includes the right to totally tear down and rebuild, change, or add physical structures or other improvements deemed necessary or desirable by Sunoco to facilitate modernization of the APlus facilities and Loaned Equipment on the Premises or to enter upon the Premises to change, alter or modify its service marks, trade dress, service names, and other similar indicia.

Source: Item 23 — RECEIPT (FDD pages 68–302)

What This Means (2024 FDD)

According to Aplus's 2024 Franchise Disclosure Document, Sunoco must be included as an additional insured and loss payee on all insurance policies. This requirement ensures that Sunoco is protected against potential liabilities and losses related to the Aplus franchise operation.

The franchisee is responsible for securing and maintaining several types of insurance coverage, including commercial general liability insurance with a minimum limit of $500,000 for bodily injury and property damage, workers' compensation and employer's liability insurance with limits of $500,000 for each accident and disease, excess liability insurance with minimum limits of $500,000 per occurrence, and all-risk property insurance for the replacement cost value of Sunoco's property. If the franchisee conducts motor vehicle service or repairs at the premises, additional insurance coverages are required, such as garagekeepers legal liability insurance with minimum limits of $100,000 per occurrence, garage liability insurance with minimum limits of $500,000, and automobile liability insurance with minimum limits of $500,000.

The franchisee must provide Sunoco with a certificate of insurance coverage before the commencement of the agreement and renewal certificates before each policy renewal date. These certificates must include a provision that the policies cannot be canceled or materially changed without at least thirty days' prior written notice to Sunoco. Failure to maintain the required insurance coverage and provide the necessary certificates constitutes a material default under the franchise agreement, potentially leading to the suspension of motor fuel deliveries or termination of the lease.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.