Is Card My Yard required to be named as a co-insured on the franchisee's insurance policies?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
to prospective franchisees or other third 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 of subrogation endorsement in favor of us and shall not limit or exclude contractual liability;
- (2) automobile insurance written on a combined single limit basis for bodily injury and
property damage with a limit not less than $500,000 per ac
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, franchisees are required to procure insurance policies that protect the franchisee, Card My Yard, its affiliates, successors, assigns, and their respective personnel against claims related to personal injury, death, property damage, loss, liability, or expenses arising from the operation of the Card My Yard business. These policies must be maintained throughout the term of the Franchise Agreement.
The insurance policies must name Card My Yard as a co-insured. Additionally, the policies must include a waiver of subrogation endorsement in favor of Card My Yard. The insurance must be purchased from a company with an A.M. Best rating of A or better and include a one-year tail following the termination, expiration, or transfer of the agreement.
The required insurance includes comprehensive general liability insurance with specific coverage amounts, such as $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. It also includes automobile insurance with a limit not less than $500,000 per accident, covering owned, hired, and non-owned automobiles. Franchisees may also be required to obtain additional insurance as specified by Card My Yard or the landlord of the business premises.