Who must be named as an additional insured on the insurance policies for an Apricot Lane franchise?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE shall procure at its expense and maintain in full force and effect during the term of this Agreement, an insurance policy or policies protecting FRANCHISEE and FRANCHISOR and its officers, directors, partners and employees, against loss or liability in such types and amounts of coverage as FRANCHISOR may reasonably require for its own and FRANCHISEE's protection, including but not limited to commercial general liability and products liability coverage, all risk coverage on the Franchised Business, business interruption insurance, automobile liability insurance and workers' compensation insurance. FRANCHISOR shall be named an additional insured in such policy or policies. Required insurance specifications shall be provided to FRANCHISEE in writing in the Confidential Operations Manual or otherwise and may be modified from time to time, as FRANCHISOR deems necessary or appropriate in its reasonable discretion.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, franchisees are required to obtain and maintain insurance policies that protect both the franchisee and the franchisor. Specifically, Apricot Lane and its officers, directors, partners, and employees must be named as additional insureds on these policies. This requirement ensures that Apricot Lane is protected against potential losses or liabilities arising from the operation of the franchise.
The insurance coverage must include commercial general liability, products liability, all-risk coverage on the franchised business, business interruption insurance, automobile liability insurance, and workers' compensation insurance. The specific types and amounts of coverage are determined by Apricot Lane and may be modified over time as deemed necessary. These insurance specifications are typically provided in writing in the Confidential Operations Manual or through other written communication.
The insurance policies must be written by an insurance company licensed in the state where the franchisee operates and have an "A" Rating Classification as indicated in Best's Key Rating Guide. Franchisees must furnish a Certificate of Insurance to Apricot Lane for approval within sixty days of signing the Franchise Agreement, but no later than the date they acquire an interest in the real property for their Franchised Business. This certificate must state that the policies will not be canceled or altered without at least thirty days prior written notice to Apricot Lane and must reflect proof of premium payment. Franchisees are responsible for covering the expense of these insurance policies.