Must the franchisee's insurance policies for a Chocolate Bash franchise be primary and non-contributing with any insurance carried by CB Franchising or its affiliates?

According to Chocolate Bash's 2024 Franchise Disclosure Document, the franchisee's insurance policies (excluding Workers Compensation) must adhere to specific conditions. These policies must list CB Franchising and its affiliates as additional insured parties. Furthermore, the policies must include a waiver of subrogation in favor of CB Franchising and its affiliates.

Most importantly, the franchisee's insurance coverage must be primary and non-contributing with any insurance carried by Chocolate Bash or its affiliates, meaning that the franchisee's insurance will be the first to respond to a claim. Finally, the insurance policies must stipulate that Chocolate Bash receives 30 days' prior written notice of any policy cancellation.

Prior to opening their Chocolate Bash franchise and upon annual renewal of their insurance coverage, franchisees must provide Certificates of Insurance to Chocolate Bash as evidence of the required coverage. These certificates can also be requested by Chocolate Bash at any time. Franchisees need to ensure they meet these insurance requirements to remain compliant with the franchise agreement.