For Circle K franchisees, what insurance policies are exceptions to the requirement of naming Circle K and its Affiliates as 'Additional Insureds'?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
You must obtain and maintain at your expense insurance coverage for your location as required in the Branding Agreement. The cost of insurance varies, depending upon the insurance company you select, the location of your facility, value of equipment and improvements, number of employees, and other factors. You must name us and our Affiliates as "Additional Insureds" on all insurance policies except Worker's Compensation and Property Insurance, where applicable.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 36–45)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, franchisees are generally required to name Circle K and its affiliates as 'Additional Insureds' on all insurance policies they obtain for their location. However, there are specific exceptions to this requirement.
The exceptions to this requirement are Worker's Compensation and Property Insurance policies, where applicable. This means that while Circle K requires to be named as additional insured on most policies, franchisees are not required to do so for their Worker's Compensation and Property Insurance.
It is important for prospective Circle K franchisees to understand these insurance requirements and exceptions, as the cost of insurance can vary based on factors such as the insurance company, location, value of equipment, number of employees, and other considerations. Franchisees should consult with insurance professionals to ensure they obtain the necessary coverage and comply with Circle K's requirements.