Who must Chatime franchisees name as an additional insured party on all insurance policies?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
You must obtain and maintain such insurance coverage that we require and satisfy other insurancerelated obligations as provided in your Franchise Agreement at your own expense. Insurance premiums will depend on the insurance carrier's charges, terms of payment and your history. All insurance policies will name us and our affiliates as an additional insured party.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 22–25)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, Chatime franchisees are required to name Chatime and its affiliates as an additional insured party on all insurance policies. This requirement ensures that Chatime and its affiliates are protected under the franchisee's insurance coverage, mitigating potential risks and liabilities.
This requirement is a fairly standard practice in franchising. By being named as an additional insured, Chatime can directly benefit from the franchisee's insurance coverage in the event of a claim related to the operation of the franchise. This can include protection against lawsuits, property damage, and other potential liabilities.
Prospective franchisees should understand that the cost of insurance premiums will depend on various factors, including the insurance carrier's charges, terms of payment, and the franchisee's history. It is important for franchisees to factor in these insurance costs when assessing the overall financial investment required to operate a Chatime franchise. Franchisees should consult with insurance professionals to ensure they obtain adequate coverage that meets Chatime's requirements and protects their business interests.