Who must Bhc franchisees name as additional insureds on their insurance policies?

According to Bhc's 2025 Franchise Disclosure Document, franchisees are required to include specific entities as additional insureds on their insurance policies. Specifically, any insurance policy that a Bhc franchisee maintains must include an endorsement naming Bhc, the Owner of the Marks, and Bhc's other affiliated companies (as identified by Bhc in writing).

This requirement extends further to include the respective shareholders, members, managers, directors, officers, employees, and agents of these entities. This means that the franchisee's insurance coverage must protect all these individuals and groups to the full extent of the coverage provided by the insurance policies.

This provision ensures that Bhc and its related parties are protected from potential liabilities arising from the franchisee's operations. It also stipulates that the franchisee's insurance coverage will be the primary coverage for these insured parties, meaning that Bhc's own insurance or self-insurance will only be used after the franchisee's coverage is exhausted. This requirement is typical in franchising, as it protects the brand and its stakeholders from liabilities arising from individual franchise operations.