Who must be named as an additional insured on the insurance policies for Aunt Millies Bakeries?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
omputer Equipment. Such payment shall be charged to DISTRIBUTOR on a weekly basis. This fee is subject to change by AUNT MILLIE'S upon thirty (30) days' notice.
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- USE: DISTRIBUTOR shall use the Computer Equipment exclusively in the operation and service of its distribution of AUNT MILLIE's products.
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- MAINTENANCE: AUNT MILLIE'S or its affiliates shall bear the expense of maintaining the Computer Equipment in good operating condition.
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- **LIABILITY
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, the franchisee (referred to as the "DISTRIBUTOR") is required to carry "all risk" insurance on the computer equipment provided by Aunt Millies Bakeries. The minimum coverage amount for this insurance is $5,000.
Aunt Millies Bakeries (and any of its affiliates that may be requested in writing by Aunt Millies Bakeries) must be included and named as an additional insured and/or loss payee on this policy. This means that in the event of a loss or claim related to the computer equipment, Aunt Millies Bakeries would be protected by the franchisee's insurance policy.
The franchisee is responsible for providing Aunt Millies Bakeries with a copy of the insurance certificate within 30 days of the agreement's effective date. This ensures that Aunt Millies Bakeries has proof of the required insurance coverage. This requirement protects Aunt Millies Bakeries' interest in the computer equipment and ensures that they are compensated for any losses or damages.