Who must the Chatime Franchisee name as additional insured parties in their Insurance Policy?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
- (35) Insurance Policies means the insurance policies then required by Franchisor, which may be changed and updated from time to time in the future, in order to address changing exposures and evolving risk factors.
Developer will be notified of any changes to the insurance requirements, and Developer must comply with the updated coverage standard.
Some property owners may require
higher levels of commercial general liability insurance or other insurance coverage under their leases.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
Based on the 2025 Chatime Franchise Disclosure Document, while the document defines 'Insurance Policies' as those required by the franchisor and states that these policies may change over time, it does not specify which parties, beyond the franchisee, must be named as additional insured parties. The FDD indicates that Chatime will notify the franchisee of any changes to insurance requirements, and the franchisee must comply with the updated coverage standards. The document also notes that property owners may require higher levels of commercial general liability insurance or other insurance coverage under their leases.
Because the FDD lacks specific details on required additional insured parties, prospective Chatime franchisees should carefully review the insurance requirements outlined in the Franchise Agreement and any related documents.
It is essential to discuss insurance requirements with the franchisor directly to understand who must be included as additional insured parties. Furthermore, franchisees should consult with an insurance professional to ensure they obtain adequate coverage that complies with Chatime's requirements and any specific demands from landlords or property owners.