Who must Buildingstars franchisees name as additional insureds on their insurance policies?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE must purchase and continuously maintain during the term of this Agreement at a minimum, the insurance coverages that BUILDINGSTARS requires and must furnish to BUILDINGSTARS evidence of such insurance as BUILDINGSTARS shall reasonably request, together with information concerning claims and losses under such insurance.
All policies of insurance required to be provided and maintained by FRANCHISEE by this Agreement must name BUILDINGSTARS, and its designated Affiliates and their successors and assigns as additional insureds (without obligation to pay the premium or any deductible amounts, all of which will be paid by FRANCHISEE), and must be carried with such responsible insurance companies and be in such form as is reasonably satisfactory to BUILDINGSTARS.
BUILDINGSTARS has the right to require FRANCHISEE to increase the types and amounts of insurance coverage as BUILDINGSTARS may, in its sole discretion, reasonably require.
Note that the insurance required by BUILDINGSTARS is the minimum insurance requirements and FRANCHISEE should consult with its own insurance agent to determine if the kinds and amounts of coverage are adequate to protect FRANCHISEE'S interests.
BUILDINGSTARS makes no representation, express or implied, that the policies and amounts are sufficient for FRANCHISEE'S needs.
BUILDINGSTARS may, in its sole option and from time to time, make insurance coverage available to FRANCHISEE.
If FRANCHISEE is eligible and wishes to participate in such insurance coverage, FRANCHISEE will be required to pay an Insurance Program Fee that is described in Section IV.F above.
If FRANCHISEE fails to obtain or maintain adequate insurance, BUILDINGSTARS may, in its sole discretion, obtain insurance for FRANCHISEE in FRANCHISEE'S name and FRANCHISEE shall
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, franchisees are required to secure and maintain specific insurance coverage throughout the term of their agreement. These insurance policies must include Buildingstars, its designated affiliates, and their successors and assigns as additional insureds. This requirement ensures that Buildingstars is protected against potential liabilities arising from the franchisee's operations.
The franchisee is responsible for covering the costs of the insurance premiums and any deductible amounts. Buildingstars retains the right to modify the required types and amounts of insurance coverage at its discretion. However, Buildingstars explicitly states that the required insurance coverage represents the minimum and advises franchisees to consult with their own insurance agents to determine if the coverage is adequate for their specific needs.
Buildingstars may offer franchisees the option to participate in an insurance coverage program. If a franchisee chooses to participate, they will be required to pay an Insurance Program Fee. If a franchisee fails to maintain adequate insurance, Buildingstars has the option to obtain insurance on behalf of the franchisee, and the franchisee will be responsible for reimbursing Buildingstars for these costs. Additionally, Buildingstars may impose a penalty of $100 for the first day and $25 for each subsequent day that the franchisee does not have the minimum required insurance coverage. It is the franchisee's responsibility to maintain adequate insurance coverage at all times during and after the term of the agreement.