Does Benihana need to be named as an additional insured on each insurance policy carried by the franchisee?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
al liability coverage, business interruption coverage, workers' compensation or employers' liability insurance) as required under this Agreement or applicable law.
- 12.2 Each insurance policy carried by Franchisee shall name BNC and any affiliates designated by BNC as additional insureds. BNC shall have the right to reasonably consent to the types and amounts of insurance coverage and the issuing companies. Insurance maintained by Franchisee shall include, at a minimum, the following:
- (a) comprehensive general liability insurance (with products, completed operations and contractual liability and independent contractors and escalators coverage) and comprehensive motor vehicle insurance (for owned and non-owned vehicles) against claims for bodily and personal injury, death and property damage caused by or occurring in conjunction with the operation of the Restaurant (or otherwise in conjunction with Franchisee's conduct of business pursuant to this Agreement) under one (1) or more policies of insurance, each on an occurrence basis, with single-limit
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, Benihana (BNC) and any affiliates designated by Benihana must be named as additional insureds on each insurance policy the franchisee carries. Benihana also retains the right to reasonably consent to the types and amounts of insurance coverage, as well as the issuing insurance companies.
The franchisee is required to maintain specific insurance coverage throughout the franchise term. This includes broad form comprehensive general liability coverage, products liability coverage, broad form contractual liability coverage, business interruption coverage, and workers' compensation or employers' liability insurance, as mandated by the agreement or applicable law.
The insurance maintained by the franchisee must include comprehensive general liability insurance with coverage for products, completed operations, contractual liability, independent contractors, and escalators. It also requires comprehensive motor vehicle insurance for owned and non-owned vehicles. The coverage must protect against claims for bodily and personal injury, death, and property damage caused by or occurring in conjunction with the operation of the restaurant, with a single-limit coverage of at least $5,000,000, or another amount Benihana reasonably requires. Additionally, every insurance policy must be endorsed to provide Benihana with at least 30 days' written notice before any changes or cancellations, and a certificate of insurance must be furnished to Benihana.