What are the insurance requirements regarding naming the Manager as an additional insured for C3 Wellness Spa?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
Practice must ensure the policies name Manager as additional insured and provide a waiver of subrogation in favor of Manager.
Such coverage must be in a form acceptable to Manager and Practice must deliver all policies of insurance, or evidence satisfactory to Manager of such coverage, upon Manager's request.
Practice's insurer must agree, by endorsement upon the policy issued by it, or by an independent document provided to Manager, that it will give Manager 30 days prior written notice of the effective date of any alteration or cancellation of such policy and that such notice will be sent to Manager via certified mail, return receipt requested at the address in this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
According to C3 Wellness Spa's 2024 Franchise Disclosure Document, franchisees are required to include the Manager as an additional insured on their insurance policies. This requirement ensures that the Manager, likely referring to C3 Wellness Spa itself or an affiliated entity, is protected under the franchisee's insurance coverage. Additionally, the franchisee must secure a waiver of subrogation in favor of the Manager, which prevents the insurance company from pursuing the Manager to recover any claims paid out.
The insurance policies must be in a form acceptable to the Manager, meaning C3 Wellness Spa has the right to review and approve the coverage. Franchisees must provide copies of all insurance policies or satisfactory evidence of coverage to the Manager upon request. This allows C3 Wellness Spa to verify that the franchisee has obtained the required insurance and that the coverage meets their standards.
Furthermore, the franchisee's insurance provider must agree to provide the Manager with 30 days' prior written notice of any alterations or cancellations to the policy. This notice must be sent via certified mail with return receipt requested to the address specified in the agreement. This provision ensures that C3 Wellness Spa is informed of any changes to the franchisee's insurance coverage, allowing them to take appropriate action to protect their interests.