Who must Beggars Pizza franchisees name as additional insureds on their insurance policies?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
13.1 Minimum Insurance Requirements. Franchisee must procure, prior to the commencement of any operations under the Agreement, and must maintain in full force and effect at all times during the term of the Agreement, at Franchisee's expense, an insurance policy or policies protecting Franchisee, Franchisor, and their respective officers, directors, partners, agents, and employees against any demand or claim with respect to personal injury, death, or property damage, or any loss, liability, or expense whatsoever arising or occurring upon or in connection with the Restaurant including, without limitation, comprehensive general liability insurance, property and casualty insurance, business interruption insurance, statutory workers' compensation insurance, employer's liability insurance, product liability insurance, liquor liability (dram shop) insurance, and automobile insurance for all vehicles used in connection with the Restaurant. Such policy or policies must be written by a responsible carrier or carriers acceptable to Franchisor,
must name Franchisor and Begcom as additional insureds as specified by Franchisor, and must provide at least the types and minimum amounts of coverage specified in the Manual.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, franchisees must include Beggars Pizza Franchisor and Begcom as additional insureds on their insurance policies. The specific requirements for this inclusion are detailed by Beggars Pizza in their manual.
This requirement ensures that Beggars Pizza and Begcom are protected against claims arising from the franchisee's operations. It also allows Beggars Pizza to recover under the franchisee's policies for any losses caused by the franchisee's negligence.
Prior to commencing operations, franchisees must provide Beggars Pizza and/or Begcom with Certificates of Insurance, as specified in the manual, demonstrating the required coverage types and amounts. These certificates must guarantee at least 30 days' prior written notice to Beggars Pizza in case of any material changes or cancellation of the insurance coverage. Failure to maintain the required insurance allows Beggars Pizza to procure insurance on behalf of the franchisee, with the franchisee bearing the costs plus a 10% administrative surcharge.