Does Checkersrallys require that the insurance policies name Checkersrallys and its affiliates as additional insured?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
All insurance policies must: (1) be issued by carriers we approve 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 from time to time; (3) name us and our affiliates as additional insured; (4) provide for 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. The minimum amount of liability coverage we prescribe in no way limits your liability to those minimum amounts. We may periodically increase the amounts of coverage required under these insurance policies and/or require different or additional insurance coverage (including reasonable excess liability insurance) at any time to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards or other relevant changes in circumstances. These insurance policies must be primary to and without right of contribution from any other insurance policy purchased by us, our affiliates and our respective directors, officers, employees, shareholders, members, agents, successors and assigns (collectively, "indemnitees"); must not limit or reduce coverage for you if there is a claim by us or any one or more of the other indemnitees; and must extend to and provide indemnity for all of your indemnification obligations to us and the other indemnitees.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 39–44)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, franchisees are required to secure insurance policies that name Checkersrallys and its affiliates as additional insured. This requirement is part of a broader set of stipulations Checkersrallys imposes on the franchisee's insurance coverage.
This means that Checkersrallys and its affiliates are protected under the franchisee's insurance policies, offering them a degree of financial security in the event of a claim. The insurance policies must also be issued by carriers approved by Checkersrallys with an A.M. Best Rating of not less than A VII. Additionally, the policies must provide 30 days' prior written notice to Checkersrallys of any material modification, cancellation, or expiration, and include a waiver of subrogation in favor of Checkersrallys and its affiliates.
These stipulations ensure that Checkersrallys maintains control over the insurance coverage its franchisees carry, mitigating potential risks to the brand and the company. The minimum amount of liability coverage Checkersrallys prescribes does not limit the franchisee's liability. Checkersrallys also retains the right to increase coverage amounts or require different or additional insurance coverage to reflect changes in circumstances such as inflation or new risks.