Besides the franchisee, who else must be named as additional insureds on the insurance policies for a Checkersrallys franchise?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
All insurance policies must: (1) be issued by carriers approved by us with an A.M. Best Rating of not less than A VII; (2) contain such types and minimum amounts of coverage, exclusions and maximum deductibles as we prescribe at any time and from time to time; (3) name us and our Affiliates as additional insureds for claims related to the operation of the Franchised Restaurant; (4) provide for thirty (30) days' prior written notice to us of any material modification, cancellation or expiration of such policy; (5) provide a waiver of subrogation in favor of us and our Affiliates; and (6) include such other provisions as we may require at any time and from time to time.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, Checkersrallys and its affiliates must be named as additional insureds on the insurance policies for claims related to the operation of the franchised restaurant.
This requirement means that in addition to the franchisee, Checkersrallys also receives protection under the franchisee's insurance policies. This protects Checkersrallys from potential liabilities arising from the franchisee's operations. The franchisee is responsible for ensuring that these additional insureds are included in the policies and that the coverage extends to claims related to the restaurant's operation.
For a prospective Checkersrallys franchisee, this signifies an added cost and responsibility. The franchisee must ensure that their insurance policies not only meet the minimum coverage requirements set by Checkersrallys but also include Checkersrallys and its affiliates as additional insureds. Failure to comply with these insurance requirements could result in Checkersrallys obtaining the necessary coverage on the franchisee's behalf, with the franchisee bearing the costs and premiums incurred.