Must Buff City Soap franchisees include a waiver of subrogation provision in their insurance policies?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
ns to the Manuals or otherwise in writing. You shall not place a new order for any Non-Proprietary Products with a supplier after receiving written notice of changes in the Non-Proprietary Products' specifications or that our approval of the supplier has been withdrawn or revoked.
Insurance
The insurance requirements described below are for a single Makery. If you own multiple Makeries, you must meet the insurance requirements below for each Makery and "per Makery location" aggregate limits when multiple Makeries are insured under single comprehensive general liability policy (capitalized terms not defined in Exhibit I of the Franchise Agreement have the meanings set forth in the Agreement). All insurance policies must:
-
- be issued by a responsible carrier or carriers that has received and maintains an A.M. Best rating of at least A-VI (or comparable ratings from a reputable insurance rating service, in the event such A.M. Best ratings are discontinued or materially altered), and otherwise approved by Franchisor;
-
- contain a waiver of subrogation provision;
-
- other than Workers' Compensation, name us as and additional insured on a primary basis for operations of BCS Makery. If the additional insured has other insurance applicable to a loss, it will be on an excess or contingent basis. The additional insured's insurance coverage will not be reduced by the existence of such other insurance;
-
- not have any deductible, self-insured retention, self-funded retention, or any similar provision unless pr
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 29–32)
What This Means (2025 FDD)
According to Buff City Soap's 2025 Franchise Disclosure Document, franchisees are required to include a waiver of subrogation provision in their insurance policies. This requirement is part of the insurance obligations that franchisees must meet for each Buff City Soap Makery they own.
In addition to the waiver of subrogation, all insurance policies must be issued by a carrier with an A.M. Best rating of at least A-VI (or a comparable rating) and be approved by Buff City Soap. The policies, except for Workers' Compensation, must name Buff City Soap as an additional insured on a primary basis for the Makery's operations. If Buff City Soap is covered by other insurance, the franchisee's policy will act as excess or contingent coverage, ensuring that Buff City Soap's coverage is not reduced by other existing insurance.
The insurance policies should also not have any deductible or similar provision exceeding $25,000 without the franchisor's written consent, and the coinsurance percentage must not be less than 80%. Furthermore, the policies must be primary and non-contributory to any other insurance held by Buff City Soap and provide 30 days' prior written notice to Buff City Soap for any material modification, cancellation, or expiration. These stipulations ensure that Buff City Soap is adequately protected and informed about the franchisee's insurance coverage.
These insurance requirements are designed to protect both the franchisee and Buff City Soap from potential liabilities and losses. Franchisees should carefully review these requirements with their insurance providers to ensure full compliance and adequate coverage for their Makery.