Who must each insurance policy name as an additional insured for an Aw Papa Ray's Pizza Restaurant?

According to Aw's 2025 Franchise Disclosure Document, franchisees are required to secure specific insurance coverage and name certain parties as additional insureds on those policies. Each insurance policy must name Aw (the franchisor) as an additional insured. Furthermore, if Aw requests it, the franchisee must also name Aw's officers, members, managers, and employees as additional insureds on each policy.

This requirement ensures that Aw has some protection against potential liabilities arising from the operation of the Papa Ray's Pizza Restaurant. By being named as an additional insured, Aw can be directly covered by the franchisee's insurance policies, which can help mitigate financial risks for the franchisor.

The FDD also states that franchisees must provide Aw with 30 days advance written notice of any material modification, cancellation, or expiration of the policy. This allows Aw to monitor the franchisee's compliance with the insurance requirements and take necessary steps to ensure continuous coverage. Franchisees should factor in the cost of insurance, which will vary depending on the insurance carrier's charges, terms of payment, and the franchisee's history, when considering the overall investment in an Aw franchise.