Who must be named as an additional insured on the insurance policies maintained by an Apricot Lane franchisee?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
CHISOR may in its discretion make such field visits provided that FRANCHISOR as a condition of making the requested field visit may require FRANCHISEE to pay all travel and related expenses associated the visit and provide additional information upon request.
SECTION 16: INSURANCE
A. Policy Requirements
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- 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.
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- Such policy or policies shall be written by an insurance company licensed in the state in which FRANCHISEE operates and having at least an "A" Rating Classification as indicated in Best's Key Rating Guide in accordance with standards and specifications set forth in the Confidential Operations Manual or otherwise in writing.
B. Certificate of Insurance
The insurance afforded by the policy or policies respecting liability shall not be limited in any way by reason of any insurance that may be maintained by FRANCHISOR. Within sixty (60) days of the signing of this Agreement, but in no event later than the date on which FRANCHISEE acquires an interest in the real property on which it will develop and operate the Franchised Business, a Certificate of Insurance showing compliance with the foregoing requirements shall be furnished by FRANCHISEE to FRANCHISOR for approval. Such certificate shall state that said policy or policies will not be canceled or altered without at least thirty (30) days prior written notice to FRANCHISOR and shall reflect proof of payment of premiums. Maintenance of such insurance and the performance by FRANCHISEE of the obligations under this paragraph shall not relieve FRANCHISEE of liability under the indemnity provision set forth in this Agreement.
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 maintain insurance policies that protect both the franchisee and Apricot Lane, including its officers, directors, partners, and employees, against potential losses or liabilities.
Specifically, Apricot Lane must be named as an additional insured on the franchisee's insurance policies. These policies must include commercial general liability, products liability coverage, all-risk coverage on the franchised business, business interruption insurance, automobile liability insurance, and workers' compensation insurance.
The insurance policies must be written by a licensed insurance company in the state where the franchisee operates, with a minimum "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 when the franchisee acquires an interest in the real property. This certificate must confirm 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.