What waiver must be included in all Baya Bar insurance policies (excluding workers' compensation)?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
All insurance policies, except for workers' compensation, must name us, our affiliates and the officers, directors, shareholders, partners, agents, representatives, independent contractors, servants and employees of each of them, as additional named insureds. All insurance policies must include a waiver of subrogation in favor of us and our affiliates, must be primary and non-contributing with any insurance carried by us or our affiliates, and must stipulate that we receive no less than 30 days' prior written notice
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 20–24)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, all insurance policies, with the exception of workers' compensation, must include a waiver of subrogation in favor of Baya Bar and its affiliates. This waiver prevents the insurance company from pursuing Baya Bar to recover any payments made to the franchisee due to a claim.
Additionally, the insurance policies must be primary and non-contributing with any insurance carried by Baya Bar or its affiliates. This means that the franchisee's insurance policy will be the first one to pay out in the event of a claim, and Baya Bar's insurance will not contribute to the payment. The policies must also stipulate that Baya Bar receives no less than 30 days' prior written notice of a material alteration to or cancellation of the policies.
These requirements ensure that Baya Bar is protected from potential liabilities and has adequate notice to address any changes in the franchisee's insurance coverage. It is a common practice in franchising to require specific insurance coverage and waivers to protect the franchisor's interests and maintain consistency across the franchise system.