Who must be named as additional insureds on the Casiola franchisee's insurance policy?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee, at Franchisee's sole expense, must purchase and maintain in full force at all times during the Term of this Agreement an insurance policy or policies protecting Franchisee as named insured and naming, as additional insureds, Franchisor, Franchisor's affiliates, Franchisor's successors and assigns, and the officers, directors, shareholders, partners, agents, representatives, independent contractors and employees of Franchisor. The policy or policies must be written by a carrier or carriers with an A.M. Best Rating of at least A-, VII and reasonably acceptable to Franchisor. From time to time Franchisor may designate preferred insurance brokers and insurance carriers.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, as a franchisee, you are required to obtain and maintain insurance policies throughout the term of the agreement. These policies must protect you as the named insured.
In addition to the franchisee, the following parties must be named as additional insureds: Casiola (the Franchisor), Casiola's affiliates, Casiola's successors and assigns, and the officers, directors, shareholders, partners, agents, representatives, independent contractors, and employees of Casiola.
The insurance policies must be written by carriers with an A.M. Best Rating of at least A-, VII, and must be reasonably acceptable to Casiola. Casiola may also designate preferred insurance brokers and carriers. It is important for prospective franchisees to understand these insurance requirements and factor in the costs of obtaining and maintaining the necessary coverage.