Who must be named as additional insureds on any insurance policies that a Bhc Master Franchisee maintains?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
Any policies of insurance that Master 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. Master 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
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, any insurance policies that a Master Franchisee maintains must include a separate endorsement naming specific parties as additional insureds. These parties include Bhc (the Franchisor) and the Owner of the Marks. Additionally, the endorsement must name Bhc's other affiliated companies identified by Bhc in writing.
Furthermore, the endorsement must extend coverage to the respective shareholders, members, managers, directors, officers, employees, and agents of the Franchisor, the Owner of the Marks, and any other affiliated companies identified in writing by Bhc. This ensures that a broad range of individuals and entities associated with Bhc are protected under the Master Franchisee's insurance policies.
The Master Franchisee's insurance coverage is structured to be primary with respect to Bhc, the Owner of the Marks, and their affiliated entities and personnel. This means that in the event of a claim, the Master Franchisee's insurance will be the first to respond. Any insurance or self-insurance maintained by Bhc, the Owner of the Marks, or their affiliates will be excess of the Master Franchisee's insurance and will not contribute to it. This arrangement prioritizes the Master Franchisee's coverage in claim situations, offering additional protection to Bhc and its related parties.