Is Sunoco Retail LLC required to be included as an 'Additional Insured' on all insurance policies for an Aplus franchise?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
urrently established.
Insurance Coverage
Prior to the commencement of and during the term of your franchise, you are required to obtain and maintain in full force and effect, for the mutual benefit of you and us, insurance through a financially responsible carrier (with a rating of "A-" or better by A.M. Best) acceptable to us which is primary as to any other valid collectible insurance. Sunoco Retail LLC Its Subsidiaries & Affiliates must be included as an "Additional Insured" on all policies.
| Type of Coverage | Leased APLUS Store | Non-Leased APLUS Store | |
|---|---|---|---|
| Workers’ Compensation | Statutory Limits | Statutory Limits | |
| Employer’s Liability | $500,000 Per Accident | $500,000 Per Accident | |
| $500,000 Disease – Policy Limit | $500,000 Disease – Policy Limit | ||
| $500,000 Disease – Per | $500,000 Disease – Per | ||
| Employee | Employee | ||
| Commercial General Liability | $500,000 combined single | $500,000 combined single | |
| limit per occurrence. | limit each occurrence. | ||
| Special Form Property | Replacement cost of the value of Sunoco’s property. (Replacement value amount to be provided by Sunoco) | N/A | |
| Excess Liability** | $1,000,000 per occurrence in | $1,000,000 per occurrence in | |
| excess of other stated coverage. | excess of other stated coverage. | ** Excess Liability coverage may be waived if you carry $1,500,000 General Liability coverage. |
We reserve the right to require you to obtain insurance policies to protect against cybersecurity threats, and accordingly, to require that we are named as additional insured on these cybersecurity insurance policies. Our insurance requirements, including types of coverages and amount may change over time.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS & SERVICES (FDD pages 33–37)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, Sunoco Retail LLC, its Subsidiaries, and Affiliates must be included as an "Additional Insured" on all insurance policies that the franchisee is required to obtain. These policies must be maintained in full force and effect during the term of the franchise for the mutual benefit of both the franchisee and Aplus. The insurance must be obtained through a financially responsible carrier with a rating of "A-" or better by A.M. Best and must be primary relative to any other valid collectible insurance.
Prior to the commencement of the Aplus Agreement, the franchisee must provide Sunoco with a certificate of insurance coverage that is satisfactory to them. A renewal certificate of such policy must be furnished to Sunoco prior to and no later than seven days before each policy renewal date. Each certificate must include a provision that such policies may not be canceled or materially changed without prior written notice to Sunoco.
Failure to maintain the required insurance coverage is considered a material breach of the Aplus Franchise Agreement, which may result in the immediate suspension of motor fuel deliveries to the Aplus Store. Aplus also reserves the right to require franchisees to obtain insurance policies to protect against cybersecurity threats, and accordingly, to require that they are named as additional insured on these cybersecurity insurance policies. The insurance requirements, including types of coverages and amount may change over time.
Depending on the type of Aplus store, the insurance coverage requirements may vary. For example, if a franchisee operates a Captive Market Aplus Store, they may be required to maintain additional insurance separate, and over and above the standard requirements. Excess Liability coverage may be waived if the franchisee carries $1,500,000 General Liability coverage.