Besides the franchisee, who else must Circle K insurance policies name as additional insureds?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
s $50 per month. We reserve the right to modify the Network Fee upon 30 days' advance written notice.
The Convenience Store Franchise Agreement requires you to maintain certain types and minimum amounts of insurance coverage for your Store. You must maintain Commercial General Liability Coverage with minimum limits of $1,000,000 per occurrence and $2,000,000 aggregate limit; Liquor Liability with minimum limits of $1,000,000 per occurrence and $2,000,000 aggregate limit; Automobile Liability Coverage with minimum limits of $1,000,000 per occurrence; and, Commercial Property Insurance (an all risk full replacement policy). In addition, you must maintain Worker's Compensation Insurance with statutory limits; Employers Liability with a minimum of $500,000 per occurrence; Umbrella or Excess Insurance with a minimum of $1,000,000 per occurrence; and, any other insurance required by law. If you sell motor fuel, you must, at all times, comply with all Federal, State and local laws applicable to the ownership and operation of commercial underground storage tanks ("USTs"), including but not limited to requirements to maintain financial assurance for the USTs. The financial assurance obligation may be satisfied through participation in state administered UST funds, or where no such UST funds are applicable or available, then commercial UST insurance shall be maintained in accordance with applicable financial assurance requirements. If you elect to maintain financial assurance through another means (e.g., selfinsurance or standby trust), you must provide evidence of same to us. You will also be required to waive rights of subrogation for Worker's Compensation and Employers Liability. We do not represent that the prescribed levels of coverage will sufficiently insure you against all risks associate with the operation of a convenience store. The insurers must be rated A- VIII or better in A.M. Best's Insurance Guide, and the policy must name us, our parent and affiliated companies as additional insureds and provide th
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 45–52)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, franchisees are required to maintain various insurance policies with specific minimum coverage limits. These include Commercial General Liability Coverage ($1,000,000 per occurrence and $2,000,000 aggregate), Liquor Liability ($1,000,000 per occurrence and $2,000,000 aggregate), and Automobile Liability Coverage ($1,000,000 per occurrence). Additionally, franchisees must have Commercial Property Insurance, Worker's Compensation Insurance, Employers Liability ($500,000 per occurrence), and Umbrella or Excess Insurance ($1,000,000 per occurrence).
These insurance policies must name Circle K, its parent company, and affiliated companies as additional insureds. This requirement protects Circle K from potential liabilities arising from the franchisee's operations. The insurance companies providing the coverage must have a rating of A- VIII or better in A.M. Best's Insurance Guide, ensuring the financial stability and reliability of the insurer.
Furthermore, the insurance policies must provide Circle K with the same advance notice of cancellation or adverse modifications as is given to the franchisee. This allows Circle K to take necessary steps to protect its interests if a franchisee's insurance coverage is at risk of being terminated or altered. Franchisees are also required to waive rights of subrogation for Worker's Compensation and Employers Liability, which prevents the insurance company from pursuing claims against Circle K in the event of a workplace injury.