Who must be named as additional insureds on the insurance policies for a Beggars Pizza franchise?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
You must obtain before opening the Restaurant, and maintain in full force and effect at all times during the term of the Franchise Agreement, at your expense, insurance policies protecting you, us, and your and our 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 arising or occurring in connection with the Restaurant, including 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), and automobile insurance coverage for all vehicles used in connection with the Restaurant. These policies must be written by a responsible carrier or carriers acceptable to us and must name both us and Begcom as additional insureds, and must provide at least the types and minimum amounts of coverage specified in the Manuals.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 15–18)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, franchisees are required to maintain various insurance policies throughout the term of their Franchise Agreement. These policies are designed to protect the franchisee, Beggars Pizza, and their respective officers, directors, partners, agents, and employees from potential claims related to personal injury, death, property damage, or any loss, liability, or expense connected to the Beggars Pizza restaurant.
Specifically, Beggars Pizza requires that both "us" (referring to Beggars Pizza itself) and "Begcom" be named as additional insureds on these insurance policies. This requirement ensures that Beggars Pizza and Begcom are protected under the franchisee's insurance coverage, providing an additional layer of security against potential liabilities arising from the operation of the franchise.
This practice is relatively common in franchising, as franchisors often require franchisees to include them as additional insureds to mitigate risks associated with the franchisee's business operations. The FDD specifies that the insurance policies must include 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), and automobile insurance coverage. Franchisees must ensure that their insurance policies meet the types and minimum amounts of coverage specified in the Beggars Pizza manuals.