Who must be named as additional insureds on any insurance policies maintained by a Bhc franchisee?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
Any policies of insurance that Franchisee maintains must contain a separate endorsement naming Franchisor and the Owner of the Marks (and Franchisor's other affiliated companies identified by Franchisor in writing), and their respective shareholders, members, managers, directors, officers, employees, and agents as additional insureds to the full extent of coverage provided under the insurance policies.
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.
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 policies must include a separate endorsement naming specific parties as additional insureds. These parties include Bhc itself (referred to as "Franchisor"), the Owner of the Marks, and any other affiliated companies that Bhc identifies in writing.
In addition to the entities themselves, the endorsement must also extend coverage to the respective shareholders, members, managers, directors, officers, employees, and agents of Bhc, the Owner of the Marks, and any identified affiliated companies. This ensures that a broad range of individuals and entities associated with Bhc are protected under the franchisee's insurance coverage.
The franchisee's insurance coverage is considered primary with respect to all these additional insureds. This means that in the event of a claim, the franchisee's insurance policy will be the first to respond, before any insurance or self-insurance maintained by Bhc or the other named parties. This requirement ensures that Bhc and its related parties have priority in coverage under the franchisee's insurance policies.