Is a City Publications franchisee's obligation to maintain insurance coverage limited by any insurance maintained by the franchisor?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee's obligation to obtain and maintain the foregoing policy or policies shall not be limited in any way by reason of any insurance which may be maintained by Franchisor, nor shall Franchisee's performance of that obligation relieve it of liability under the indemnity provisions set forth in Section 22.B of this Agreement. Franchisee agrees to provide annually a certificate of insurance showing compliance with the foregoing requirements. Such certificate shall state that said policy or policies shall not be canceled or altered without at least thirty (30) days prior written notice to Franchisor and shall reflect
proof of payment of premiums.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, a franchisee's obligation to obtain and maintain insurance policies is not limited by any insurance that City Publications may maintain. The franchisee must fulfill their insurance requirements independently.
This means that even if City Publications has its own insurance coverage, the franchisee is still responsible for securing and maintaining the specific insurance policies required under the franchise agreement. The franchisee's insurance obligations are separate and distinct from any insurance held by City Publications.
The franchisee must also provide City Publications with an annual certificate of insurance as proof of compliance. This certificate must confirm that the policy will not be canceled or altered without at least thirty days' prior written notice to City Publications and must show proof of premium payments. If a franchisee fails to maintain the required insurance coverage, City Publications has the right, but not the obligation, to procure the necessary insurance and charge the franchisee for the costs, including a reasonable fee for expenses incurred by City Publications.