Does Circle K require franchisees to name Circle K and its Affiliates as 'Additional Insureds' on all insurance policies?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 6 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. The low end of the investment noted in Item 7 above assumes you have obtained the required insurance coverage for your Store.
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 required to obtain and maintain insurance coverage for their store. The cost of this insurance will vary based on factors such as the insurance company selected, the store's location, the value of equipment and improvements, and the number of employees.
An important stipulation is that Circle K and its affiliates must be named as "Additional Insureds" on all insurance policies. However, there are exceptions to this rule. Franchisees are not required to name Circle K as an additional insured on Worker's Compensation and Property Insurance policies, where applicable.
This requirement ensures that Circle K has an added layer of protection against potential liabilities related to the franchisee's operations. Franchisees should factor in the potential costs of adding Circle K as an additional insured when evaluating their overall insurance expenses.