What are the requirements for naming additional insureds on the insurance policies that Camp Margaritaville franchisees are required to maintain?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Insurance Required. During the Term, Franchisee will procure and maintain the types and amounts of insurance coverage with the deductibles, limits, carrier ratings, and policy obligations set forth in the System Standards, including any additional insurance as may be required based on specific amenities offered. Such insurance requirements may include: property insurance including business interruption, earthquake, flood, terrorism and windstorm; workers' compensation; commercial general liability; liquor liability; business auto liability; umbrella or excess liability; fidelity coverage; employment practices liability; cyber liability; and such other insurance customarily carried on lodging properties similar to the Resort. Franchisor may require Franchisee to obtain additional types of insurance or increase the amount of coverage. All insurance will by endorsement specifically:
- (i) name as unrestricted additional insureds Franchisor, any Affiliate designated by Franchisor and their employees and agents (except for workers' compensation and fidelity insurance);
- (ii) provide that the policies will be primary and that any insurance carried by any additional insured will be excess and non-contributory;
- (iii) contain a waiver of subrogation in favor of Franchisor and any Affiliate of Franchisor; and
- (iv) provide that the policies will not be canceled, non-renewed or reduced without at least 30 days' prior notice to Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, franchisees are required to procure and maintain various types of insurance coverage during the term of the franchise agreement. These insurance policies must include specific endorsements to protect the franchisor and its affiliates.
The insurance policies, except for workers' compensation and fidelity insurance, must name Camp Margaritaville, any affiliate designated by Camp Margaritaville, and their employees and agents as unrestricted additional insureds. This means that these parties are protected under the franchisee's insurance policies to the fullest extent allowed by the policy.
Furthermore, the franchisee's insurance policies must be primary, meaning they pay out before any insurance carried by the additional insured parties. The policies must also contain a waiver of subrogation in favor of Camp Margaritaville and its affiliates, preventing the insurance company from pursuing claims against them. Finally, the policies must provide at least 30 days' prior notice to Camp Margaritaville before any cancellation, non-renewal, or reduction in coverage.