Who must Benjamin Franklin Plumbing franchisees name as additional insureds on their insurance policies?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
9. INSURANCE
- 9.1. Basic Requirements. You must maintain the types and minimum amounts of insurance coverage and bonds we specify for Franchised Businesses, at your own expense. The policies must be written by carriers with an industry rating acceptable to us; must name Franchisor, our affiliates, and their respective officers, directors, shareholders, and employees as additional insureds as we direct; and must not have deductibles, exclusions or co-insurance that are unacceptable to us. Each insurance policy must contain a waiver by the insurance company of subrogation rights against Franchisor, its affiliates, and their successors and assigns. You are required to provide us with evidence of all required insurance coverage and payment of premiums at the times we require. At least thirty (30) days before each insurance policy expires, you are required to furnish a copy of renewal or replacement insurance and evidence of payment of the premium. Your obligation to obtain coverage is not limited by insurance that we maintain.
- 9.2. Changes. We have the right to increase the amounts of insurance coverage required and to require different or additional kinds of insurance. If you do not have the insurance required by this Agreement, we have the right (but no obligation) to obtain insurance on your behalf. If we do so, you agree to reimburse us for the cost of insurance, plus a reasonable fee for our services.
Source: Item 23 — RECEIPTS (FDD pages 88–312)
What This Means (2025 FDD)
According to the 2025 Benjamin Franklin Plumbing Franchise Disclosure Document, franchisees must maintain insurance policies that name specific parties as additional insureds. These parties include Benjamin Franklin Franchising SPE LLC (the Franchisor), its affiliates, and their respective officers, directors, shareholders, and employees. The insurance policies obtained by the franchisee must be written by carriers with an industry rating acceptable to the franchisor and must not have unacceptable deductibles, exclusions, or co-insurance levels.
This requirement ensures that the franchisor and its related parties are protected under the franchisee's insurance coverage, mitigating potential risks and liabilities. It is a common practice in franchising to protect the brand and the franchisor from potential lawsuits or claims arising from the franchisee's operations.
Furthermore, the franchisee is obligated to provide evidence of the required insurance coverage and premium payments to Benjamin Franklin Plumbing at specified times. They must also furnish copies of renewal or replacement insurance and evidence of premium payment at least thirty days before each policy expires. This obligation is not limited by any insurance that the franchisor may maintain, emphasizing the franchisee's primary responsibility for securing and maintaining adequate insurance coverage. Failure to comply with these insurance requirements could result in the franchisor obtaining insurance on the franchisee's behalf, with the franchisee responsible for reimbursing the franchisor for the cost of the insurance plus a reasonable fee for their services.