How much advance written notice must a franchisee's insurance policy provide to Aw for any material modification, cancellation, or expiration?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
Each insurance policy must name us (and, if we request it, our officers, members, manager, and employees) as an additional insured and must provide us with 30 days advance written notice of any material modification, cancellation, or expiration of the policy.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–21)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, franchisees are required to maintain several types of insurance coverage, including comprehensive public liability, product liability, motor vehicle liability, general casualty insurance, workers' compensation, and business interruption insurance. These policies must name Aw as an additional insured.
Specifically, Aw requires that each insurance policy provide them with 30 days advance written notice of any material modification, cancellation, or expiration of the policy. This requirement ensures that Aw is informed of any changes to the franchisee's insurance coverage that could affect their liability or financial stability.
This is a fairly standard requirement in franchising, as it protects the franchisor from potential liability arising from the franchisee's operations. Franchisees should ensure they understand and comply with these insurance requirements to avoid any breach of the franchise agreement.