Who must Cilantro Taco Grill franchisees name as additional insureds on their insurance policies?

According to the 2024 Cilantro Taco Grill FDD, franchisees are required to name specific entities as additional insureds on their insurance policies. These entities include Cilantro Taco Grill Franchisor and their affiliates, as well as their members, officers, agents, and employees. This requirement ensures that these parties are protected under the franchisee's insurance coverage for liabilities that may arise from the operation of the Cilantro Taco Grill franchise.

The public liability policies must contain a provision that allows the additional insureds to recover under the policy for any loss caused by the franchisee or the franchisee's staff, even though they are named as insureds. This clause is designed to protect Cilantro Taco Grill and its related parties from potential liabilities arising from the franchisee's operations. Additionally, all required insurance policies must include a waiver of subrogation in favor of the additional insureds, preventing the insurance company from pursuing claims against them.

This requirement is a standard practice in franchising, as it provides an added layer of protection for the franchisor and its affiliates against potential liabilities related to the franchisee's business operations. Franchisees should carefully review their insurance policies to ensure compliance with these requirements and understand the scope of coverage provided to the additional insureds. Failure to comply with these insurance requirements could result in a breach of the franchise agreement and potential legal and financial repercussions.