Who must be named as additional insureds on all insurance policies maintained by Auntie Annes franchisees?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
We require you to purchase and maintain specific types of insurance coverage as described in more detail in the Franchise Agreement and the Manuals from insurance companies that meet our minimum standards. We also specify the minimum amounts of insurance coverage you must maintain. All insurance policies must name us and others we designate as additional insureds. You must provide us with evidence of your insurance coverage before you begin operations at your Shop, upon annual renewal of your insurance, and otherwise within 10 days of our demand for proof. We reserve the right to obtain a master insurance policy on behalf of the System for certain types of coverage and require you to pay all or a portion of your proportionate share of coverage under the master policy to us or our Approved Supplier.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 54–59)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, franchisees are required to secure specific types and amounts of insurance coverage from companies meeting Auntie Annes's minimum standards. All insurance policies must name Auntie Annes, as well as any other parties they designate, as additional insureds.
Before commencing operations, franchisees must furnish Auntie Annes with evidence of their insurance coverage. This proof is required again upon the annual renewal of the insurance policies and within 10 days of any request from Auntie Annes for such documentation.
Auntie Annes retains the option to procure a master insurance policy on behalf of the entire franchise system for certain types of coverage. In such instances, franchisees may be required to pay their proportionate share of the coverage under the master policy, either directly to Auntie Annes or to their approved supplier.