Must the insurance policies of a Chocolate Fish Coffee franchisee be primary and non-contributing with any insurance carried by Chocolate Fish Franchising?

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

Most importantly, the franchisee's insurance coverage must be primary and non-contributing with any insurance carried by Chocolate Fish Franchising or its affiliates. This means that in the event of a claim, the franchisee's insurance policy will be the first one used to cover the losses, before any insurance policies held by Chocolate Fish Coffee.

Finally, the insurance policies must stipulate that Chocolate Fish Franchising will receive 30 days' prior written notice of cancellation. This ensures that Chocolate Fish Coffee is informed of any changes to the franchisee's insurance coverage and can take steps to protect its interests if necessary. These requirements are typical in franchising to protect the brand and ensure consistent risk management.