What waiver of subrogation requirements are there for insurance policies of a Card My Yard franchisee?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
us from time to time in writing), you must carry:
(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 accident. Such insurance shall include coverage for owned, hired, and nonowned automobiles and shall include additional insured and waiver of subrogation endorsements in favor of us;
(3) If applicable, workers' compensation (Coverage A) with statutory limits complying with the laws of the applicable state, and employer's liability (Coverage B) with limits not less than $1,000,000 per accident, $1,000,000 disease policy limit, and $1,000,000 disease per employee. Such insurance shall include a waiver of subrogation endorsement in favor of us;
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 obtain specific insurance policies that include a waiver of subrogation in favor of Card My Yard, its affiliates, and their respective officers, directors, shareholders, partners, members, agents, representatives, independent contractors, servants, and employees. This waiver means that the insurance company will not pursue Card My Yard to recover any payments made to the franchisee for a claim.
The comprehensive general liability insurance policy must be written on an occurrence form and include coverage for professional liability, broad form contractual liability, broad form property damage, personal injury, advertising injury, completed operations, products liability, and fire damage coverage. The amount must not be 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 Card My Yard and shall not limit or exclude contractual liability.
Automobile insurance must be written on a combined single limit basis for bodily injury and property damage with a limit not less than $500,000 per accident. This insurance must include coverage for owned, hired, and non-owned automobiles and shall include additional insured and waiver of subrogation endorsements in favor of Card My Yard. If applicable, franchisees must maintain workers' compensation (Coverage A) with statutory limits complying with the laws of the applicable state, and employer's liability (Coverage B) with limits not less than $1,000,000 per accident, $1,000,000 disease policy limit, and $1,000,000 disease per employee. This insurance shall include a waiver of subrogation endorsement in favor of Card My Yard.
These insurance policies protect Card My Yard from potential liabilities related to the franchisee's business operations. Franchisees must procure these policies no later than five days before the Opening Date and maintain them throughout the term of the Franchise Agreement. 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 Card My Yard as a co-insured, and shall otherwise be reasonably acceptable to Card My Yard.