Are Bumper Man franchisees required to include a waiver of subrogation provision in their insurance policies?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
o | 5602 S. Illinois Ave., Cudahy, WI 53110 | 262-629-2850 |#### EXHIBIT D TO FRANCHISE AGREEMENT
DESIGNATED AREA
| State | Effective Date |
|---|---|
| California | Pending |
| Hawaii | Not Registered |
| Illinois | Pending |
| Indiana | Pending |
| Maryland | Pending |
| Michigan | April 8, 2025 |
| Minnesota | Pending |
| New York | Pending |
| North Dakota | Pending |
| Rhode Island | Pending |
| South Dakota | Pending |
| Virginia | Pending |
| Washington | Pending |
| Wisconsin | Pending |
SCHEDULE D-1
MAP OF PREMISES
EXHIBIT E TO FRANCHISE AGREEMENT
INSURANCE REQUIREMENTS
The insurance requirements described below are for a single Bumper Business. All insurance policies must be issued by a responsible carrier or carriers that has received and maintains an A.M. Best Rating of A+ or better and be authorized to transact business in the state where the Bumper Business premises is located, and otherwise approved by Franchisor; include a waiver of subrogation provision or endorsement in favor of Franchisor Indemnitees; be primary and non-contributory to any other insurance that any of Franchisor Indemnitees for as procured for themselves; provide for 30 days' prior written Notice to Franchisor of any material modification, cancellation, or expiration of such policy. Such endorsements must not contain language that limits the liability afforded to Franchisor and its Affiliates to any amount less than stated on the declarations page of each policy. No insurance policy will contain a provision that in any way limits or reduces coverage for Franchisee in the event of a claim by Franchisor Indemnitees. Such insurance coverage will not include an insured versus insured exclusion or any exclusion that prevents coverage of a claim by one insured against another. All insuran
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, franchisees are required to include a waiver of subrogation provision or endorsement in favor of Franchisor Indemnitees in their insurance policies. This requirement is part of the insurance obligations outlined in Exhibit E of the Franchise Agreement. The insurance policies must be issued by a responsible carrier with an A.M. Best Rating of A+ or better and authorized to transact business in the state where the Bumper Business is located, unless otherwise approved by Bumper Man.
In addition to the waiver of subrogation, the insurance policies must be primary and non-contributory to any other insurance that any of Franchisor Indemnitees procured for themselves. Franchisees must also provide Bumper Man with 30 days' prior written notice of any material modification, cancellation, or expiration of the policy. The endorsements must not limit the liability afforded to Bumper Man and its Affiliates to any amount less than stated on the declarations page of each policy.
Furthermore, the insurance coverage cannot include an insured versus insured exclusion or any exclusion that prevents coverage of a claim by one insured against another. All insurance coverage must include a separation of insureds provision and identify Bumper Man, Inc. as an additional insured. These requirements ensure that Bumper Man is protected from potential liabilities and claims related to the franchisee's business operations.
These insurance requirements are in addition to the minimum coverage amounts for Garage Liability Insurance ($1,000,000 per occurrence), Garage Keepers Insurance ($50,000 per vehicle), and Commercial Vehicle Insurance ($500,000 combined single limit). Franchisees must comply with these insurance requirements to maintain their franchise agreement in good standing.