Who must be named as co-insureds on the insurance policies for a Buns On Fire franchise?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall obtain and place at its sole cost and expense, with an insurer rated "A+" or better in A.M. Best and Company, Inc.'s Directory who is authorized to do business in the state in which the Franchisee's Franchised Business is located, and to keep in full force and effect during the terms of this Agreement, insurance coverage on an "occurrence basis" naming Franchisor, its officers, directors and shareholders and any supplier of Products, and any designated primary and secondary lessor as co-insureds (such insurance policies hereinafter referred to collectively as "Insurance") in amounts identified in the Confidential Operations Manual or an addendum thereto:
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, franchisees are required to secure insurance coverage, naming specific parties as co-insureds. This insurance must be maintained throughout the term of the Franchise Agreement.
The co-insureds on the insurance policies must include Buns On Fire (the Franchisor), its officers, directors, and shareholders. Additionally, any supplier of products to the franchise, as well as any designated primary and secondary lessor of the property, must also be named as co-insureds. The insurance policies must be written on an "occurrence basis" by an insurer with a rating of "A+" or better from A.M. Best and Company, Inc., authorized to conduct business in the state where the Buns On Fire franchise is located.
This requirement ensures that Buns On Fire and other involved parties are protected against potential liabilities and losses arising from the operation of the franchise. The franchisee bears the sole cost and expense of obtaining and maintaining this insurance coverage. The specific amounts of insurance coverage required are detailed in the Confidential Operations Manual or an addendum to it.