Must Beef O Bradys be named as an additional insured on the franchisee's insurance policies?

According to Beef O Bradys's 2025 Franchise Disclosure Document, franchisees are required to name Beef O Bradys as additional insureds on their insurance policies. This requirement ensures that Beef O Bradys is protected under the franchisee's insurance coverage in the event of claims or liabilities arising from the operation of the franchise.

The FDD specifies that all insurance policies obtained by the franchisee must extend to provide indemnity for all obligations assumed by the franchisee under the Franchise Agreement. The policies must also contain a waiver of the insurance company's right of subrogation against Beef O Bradys. Furthermore, the coverage should apply separately to each insured party, as if a separate policy had been issued to each.

In addition, the insurance company must provide Beef O Bradys with at least thirty days' prior written notice of any termination, expiration, cancellation, or material modification of the insurance policy. This ensures that Beef O Bradys is kept informed about the status of the franchisee's insurance coverage and can take necessary steps to protect its interests.

This requirement is a standard practice in franchising, as it protects the franchisor from potential liabilities arising from the franchisee's operations. Prospective Beef O Bradys franchisees should carefully review the insurance requirements outlined in the FDD and ensure that they can obtain the necessary coverage to comply with these requirements.