Who must the Card My Yard franchisee's insurance policies protect?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
hird parties data from your reports if we determine, in our sole discretion, that such disclosure is necessary or advisable.
XIII. INSURANCE
- A. Insurance Coverage Requirements. Not later than five (5) days before the Opening Date, you must procure, at your expense, an insurance policy or policies protecting you, us, our Affiliates, successors and assigns, and the officers, directors, shareholders, partners, members, agents, representatives, independent contractors and employees of each of them against any demand or claim with respect to personal injury, death or property damage, or any loss, liability or expense whatsoever arising or occurring at or in connection with the operation of the Card My Yard business. You must maintain these policies in full force and effect at all times during the term of this Agreement. We have approved an insurance program offered by The Hartford Financial Services Group, Inc., but you may, at your option, choose to obtain insurance from any qualified provider. All required insurance policies must be purchased from an insurance company with an A.M. Best rating of A or better, must include a one-year tail following the termination, expiration or transfer of this Agreement, must name us as a co-insured, and shall otherwise be reasonably acceptable to us and must include, at a minimum (except as additional coverages and higher policy limits may reasonably be specified by us from time to time in writing), the following:
- (1) comprehensive general liability insurance written on an occurrence form, including coverage for professional liability, broad form contractual liability, broad form property damage, personal injury, advertising injury, completed operations, products liability and fire damage coverage, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, $2,000,000 products/completed operations aggregate, and $1,000,000 personal and advertising injury. The general liability coverage shall include a waiver
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, the insurance policies that a franchisee must obtain are required to protect several parties. Specifically, these policies must protect the franchisee, Card My Yard (the franchisor), its affiliates, successors, and assigns. Additionally, the policies must protect the officers, directors, shareholders, partners, members, agents, representatives, independent contractors, and employees of each of these entities.
This requirement means that the franchisee's insurance coverage needs to be comprehensive, extending beyond just the franchisee's own protection. It includes safeguarding the franchisor and its related parties from potential liabilities arising from the franchisee's operation of the Card My Yard business. This is a common practice in franchising, as the franchisor wants to ensure that it is shielded from legal and financial risks associated with the actions of its franchisees.
The franchisee is responsible for procuring and maintaining these insurance policies at their own expense, ensuring that the coverage remains in full effect throughout the term of the Franchise Agreement. The FDD specifies minimum coverage amounts for different types of insurance, such as comprehensive general liability and automobile insurance. Furthermore, Card My Yard has the right to specify additional coverages and higher policy limits in writing from time to time, so the franchisee needs to stay informed of any changes to these requirements.
Card My Yard has pre-approved an insurance program offered by The Hartford Financial Services Group, Inc.; however, franchisees are not obligated to use this program and can choose any qualified provider, as long as the insurance company has an A.M. Best rating of A or better. The policies must include a one-year tail following the termination, expiration, or transfer of the agreement and must name Card My Yard as a co-insured. This ensures that even after the franchise relationship ends, Card My Yard remains protected from potential claims arising from the franchisee's past operations.