How does a Bhc franchisee's insurance coverage relate to any insurance maintained by the Franchisor or the Owner of the Marks?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee's insurance coverage will be primary as respects Franchisor, the Owner of the Marks, and other affiliated companies identified by Franchisor in writing, and their respective shareholders, members, managers, directors, officers, employees, and agents.
Any insurance or self- insurance maintained by Franchisor, the Owner of the Marks, and other affiliated companies identified by Franchisor in writing, and their respective shareholders, members, managers, directors, officers, employees, and agents will be excess of Franchisee's insurance and will not contribute with it.
Franchisee must provide Franchisor a copy of the policy and endorsement upon issuance and upon every renewal.
Franchisee hereby grants Franchisor a waiver of any right of subrogation which any insurer of Franchisee may acquire against Franchisor by virtue of payment of any loss under such insurance.
This provision applies regardless of whether Franchisor has received a waiver of subrogation endorsement from the insurer.
Franchisee's obligation to obtain and maintain the foregoing policies of insurance in the amount specified will not be limited in any way by reason of any insurance that may be maintained by Franchisor, nor will Franchisee's procurement of required insurance relieve it of liability under the indemnity provisions set forth in section 16.2 of this Agreement.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a franchisee's insurance coverage is primary with respect to Bhc, the Owner of the Marks, their affiliated companies, and their respective shareholders, members, managers, directors, officers, employees, and agents. This means that in the event of a claim, the franchisee's insurance policy will be the first one used to cover any losses.
Any insurance or self-insurance maintained by Bhc, the Owner of the Marks, and their affiliated companies will be excess of the franchisee's insurance. In other words, Bhc's insurance acts as a secondary layer of protection and will only be utilized after the franchisee's insurance coverage has been exhausted. This arrangement ensures that the franchisee's insurance bears the initial responsibility for covering claims, while Bhc's insurance provides additional protection if needed.
The franchisee is also required to provide Bhc with a copy of their insurance policy and any endorsements upon issuance and renewal. Additionally, the franchisee grants Bhc a waiver of any right of subrogation, which prevents the franchisee's insurer from pursuing claims against Bhc for payments made under the franchisee's policy. The franchisee's obligation to maintain the required insurance coverage is not limited by any insurance that Bhc may maintain, and the franchisee's insurance procurement does not relieve them of liability under the indemnity provisions outlined in the franchise agreement.