Is the insurance coverage obtained by a Beyond Juicery Eatery franchisee primary to any insurance purchased by Beyond Juicery Eatery?
Beyond_Juicery_Eatery Franchise · 2025 FDDAnswer from 2025 FDD Document
All policies of insurance procured by Franchisee shall be written as primary policies and not be excess of coverage that Franchisor may carry.
10.02 Such insurance shall also:
- F.
The policies will be primary to and without right of contribution from any insurance purchased by us;
Source: Item 23 — RECEIPTS (FDD pages 60–337)
What This Means (2025 FDD)
According to the 2025 Beyond Juicery Eatery Franchise Disclosure Document, the insurance policies that a franchisee obtains must be primary to any insurance purchased by Beyond Juicery Eatery. This means that in the event of a claim, the franchisee's insurance coverage will be the first to respond and pay out before any coverage held by Beyond Juicery Eatery is utilized. This requirement is designed to protect Beyond Juicery Eatery from potential liabilities arising from the franchisee's operations.
Beyond Juicery Eatery also requires that the franchisee's insurance policies include a waiver of subrogation in their favor for casualty losses. This prevents the insurance company from pursuing Beyond Juicery Eatery to recover any payments made on a claim. The franchisee must also name Beyond Juicery Eatery as an additional insured on an endorsement form acceptable to them, ensuring that Beyond Juicery Eatery is protected under the franchisee's policies. The policies must cover Beyond Juicery Eatery's own acts or omissions and must not be limited to their vicarious liability.
These stipulations ensure that Beyond Juicery Eatery has a strong layer of protection against potential liabilities arising from the franchisee's business operations. The franchisee bears the responsibility of securing and maintaining adequate insurance coverage that prioritizes Beyond Juicery Eatery's protection. Franchisees must obtain their insurance coverage from a reputable insurance company with an A.M. Best analytical rating of "A-" or better and in the A.M. Best's financial size category of Class VIII or better.