Must City Publications franchisees' insurance policies contain a waiver of subrogation rights against the franchisor?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
You must procure, at your sole expense and maintain in full force and effect during the term of the Franchise Agreement, the following insurance naming us as additional insured and/or loss payee, in addition to any other insurance that may be required by applicable law, any lender or landlord. In addition, each insurance policy shall contain a waiver of all subrogation rights against us and our successors and assigns.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 16–18)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, franchisees are required to procure and maintain several types of insurance policies throughout the term of the Franchise Agreement. These policies must name City Publications as an additional insured and/or loss payee.
Specifically, City Publications requires that each insurance policy obtained by the franchisee includes a waiver of all subrogation rights against City Publications, its successors, and assigns. This requirement is in addition to any other insurance requirements mandated by applicable law, lenders, or landlords.
A waiver of subrogation means that the insurance company cannot attempt to recover claim payments it makes to the franchisee from City Publications, even if City Publications' actions contributed to the loss. This is a fairly common requirement in franchise agreements to protect the franchisor from potential liability and related legal costs.