What waiver must Bombs Away franchisees include in their insurance policies?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
es:
- A. Insurance. You must obtain insurance as described in the Franchise Agreement and in our Manual, which includes (i) Commercial General Liability insurance, including products liability coverage, and broad form commercial liability coverage, written on an "occurrence" policy form in an amount of not less than $1,000,000 single limit per occurrence and $2,000,000 aggregate limit, (ii) Business Automobile Liability insurance including owned, leased, non-owned and hired automobiles coverage in an amount of not less than $1,000,000, and (iii) Workers Compensation coverage as required by state law. Your policies (other than Workers Compensation) must list us and our affiliates as an additional insured, must include a waiver of subrogation in favor of us and our affiliates, must be primary and non-contributing with any insurance carried by us or our affiliates, and must stipulate that we receive 30 days' prior written not
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 15–17)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, franchisees are required to secure specific insurance coverage and include a waiver of subrogation in favor of Bombs Away and its affiliates in their insurance policies. This waiver prevents the insurance company from pursuing Bombs Away or its affiliates to recover claim payments made to the franchisee.
In addition to the waiver, Bombs Away franchisees must maintain (i) Commercial General Liability insurance with a $1,000,000 single limit per occurrence and a $2,000,000 aggregate limit, (ii) Business Automobile Liability insurance of not less than $1,000,000, and (iii) Workers Compensation coverage as required by state law. The policies, excluding Workers Compensation, must list Bombs Away and its affiliates as additional insured parties and be primary and non-contributing with any insurance carried by Bombs Away or its affiliates.
Furthermore, the insurance policies must stipulate that Bombs Away receives 30 days' prior written notice of cancellation. This requirement ensures Bombs Away is informed of any potential lapse in coverage, allowing them to take necessary actions to protect their interests. These insurance requirements are typical in franchising to protect the franchisor from liability related to the franchisee's operations.