Who must find the terms of the business interruption insurance acceptable for City Publications franchisees?

According to City Publications's 2025 Franchise Disclosure Document, City Publications franchisees must secure business interruption insurance with terms acceptable to City Publications. This requirement is part of a broader set of insurance obligations franchisees must meet to protect both their business and City Publications from potential liabilities and losses.

The FDD specifies several types of insurance coverage that City Publications franchisees must maintain, including comprehensive general public liability insurance with a minimum coverage of $1,000,000, "All Risk" coverage for business contents, workers' compensation, automobile liability insurance with a combined single limit of at least $1,000,000, and general property damage insurance. Additionally, franchisees must obtain trucking, shipping, freight, or F.O.B. insurance coverage to protect direct mail advertisement pieces in transit. These insurance policies must name City Publications as an additional insured and/or loss payee and include a waiver of subrogation rights against City Publications.

The requirement for business interruption insurance with terms acceptable to City Publications means that franchisees need to ensure their policy adequately covers potential income loss due to unforeseen events that disrupt their business operations. City Publications's approval of the terms provides them with a level of assurance that the coverage is sufficient to protect their interests as well. This is a common practice in franchising, as franchisors often require specific insurance coverage to mitigate risks associated with the brand and its franchisees.

Prospective City Publications franchisees should carefully review the insurance requirements outlined in the Franchise Agreement and consult with insurance professionals to obtain appropriate coverage that meets City Publications's standards. Understanding these requirements and factoring the costs of insurance into their financial projections is crucial for the long-term success of their franchise.