Who must be named as additional insureds on the insurance policies for a Beard Papas franchise?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
All insurance policies required under your Franchise Agreement and as set forth in the Franchise Agreement must be written by a responsible carrier, reasonably acceptable to us and all insurance (excluding workers' compensation) must name us, our officers, directors, shareholders, partners, agents, representatives and independent contractors as additional insureds.
The insurance policies must include a provision that the insurance carrier must provide us with no less than 30 days' prior written notice in the event of a material alteration to, or cancellation of, any insurance policy.
A certificate of insurance must be furnished by you to use at the earlier of 90 days after the Effective Date of the Franchise Agreement or prior to the commencement of our initial training program.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 26–29)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, all insurance policies, excluding workers' compensation, must name specific parties as additional insureds. This requirement extends to Beard Papas itself, as well as its officers, directors, shareholders, partners, agents, representatives, and independent contractors.
This requirement means that a Beard Papas franchisee must ensure their insurance policies provide coverage not only for their own business but also for the franchisor and its associated parties. This protects Beard Papas from potential liabilities arising from the franchisee's operations. The franchisee bears the cost of this extended coverage.
The insurance carrier must also provide Beard Papas with at least 30 days' prior written notice if there are any material alterations to, or cancellation of, any insurance policy. Furthermore, the franchisee must furnish a certificate of insurance to Beard Papas either 90 days after the effective date of the Franchise Agreement or before the commencement of the initial training program, whichever comes first.
These stipulations are typical in franchising, as they safeguard the franchisor's interests and brand reputation. Franchisees should carefully review their insurance policies to confirm compliance with these requirements and understand the implications of these additional insured endorsements.