Who must be named as additional insureds on the insurance policies for an Augusta Lawn Care franchise?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
You shall procure, prior to the commencement of any activities or operations under this Agreement, and shall maintain in full force and effect at all times during the term of this Agreement (and for such period thereafter as is necessary to provide the coverages required hereunder for events having occurred during the term of this Agreement), at Your expense, an insurance policy or policies protecting You, Augusta Lawn Care, and their respective officers, directors, partners, agents and employees against any demand or claim with respect to personal injury, death or property damage, business interruption, or any loss, liability or expense whatsoever arising or occurring upon or in connection with the Business, including, but not limited to, comprehensive general liability insurance, property insurance (including, but not limited to, fire, vandalism, and malicious mischief insurance for the replacement value of the Augusta Lawn Care Business and its contents), casualty insurance, business interruption insurance, statutory workers' compensation insurance, employer's liability insurance, product liability insurance, and automobile insurance coverage for all vehicles used in connection with the operation of Business, if applicable. Such policy or policies shall be written by a responsible carrier or carriers acceptable to Augusta Lawn Care, shall name Augusta Lawn Care and its subsidiaries and affiliates as additional insureds, shall provide for Augusta Lawn Care to receive notice upon cancellation or any event of default, including non-payment, and shall provide at least the types and minimum amounts of coverage specified in the Manual. Augusta Lawn Care shall have the right, from time-to-time, to make such changes in minimum policy limits and endorsements in the Manual or otherwise in writing as it may determine in its reasonable discretion.
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to Augusta Lawn Care's 2025 Franchise Disclosure Document, franchisees are required to secure and maintain insurance policies throughout the term of their agreement. These policies must protect the franchisee, Augusta Lawn Care, and their respective officers, directors, partners, agents, and employees against various claims and liabilities related to the business.
The insurance policies must name Augusta Lawn Care and its subsidiaries and affiliates as additional insureds. This requirement ensures that Augusta Lawn Care is protected under the franchisee's insurance coverage for any claims arising from the franchisee's operations. The policies must also provide for Augusta Lawn Care to receive notice upon cancellation or any event of default, including non-payment, to allow them to take appropriate action.
Augusta Lawn Care retains the right to modify the minimum policy limits and endorsements in the manual or in writing. Franchisees must comply with these changes. If a franchisee fails to maintain the required insurance, Augusta Lawn Care has the right, but not the obligation, to procure insurance on the franchisee's behalf and charge the franchisee for the costs and expenses incurred.