Are City Publications franchisees required to obtain vandalism and malicious mischief insurance?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
e to the claim, exclusive of any postage or other distribution costs. Franchisor shall not be liable to Franchisee for loss or damage to Franchisee's property for any reason while same is in the possession of the Franchisor. Franchisee shall keep a copy of all materials submitted to Franchisor.
SECTION 16. INSURANCE
A. Types & Amounts of Coverage
Franchisee shall procure, at its sole expense and maintain in full force and effect during the term of this Agreement, the following insurance naming Franchisor as additional insured and/or loss payee, in addition to any other insurance that may be required by applicable law, any lender or landlord.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, franchisees are required to obtain general property damage insurance, including fire and extended coverage, vandalism, and malicious mischief insurance. This insurance coverage must be maintained throughout the term of the Franchise Agreement.
This requirement means that a City Publications franchisee must secure and pay for an insurance policy that specifically covers potential losses or damages resulting from vandalism or malicious acts against their business property. This is in addition to other insurance policies they are required to carry, such as comprehensive general public liability, "all risk" coverage, workers' compensation, and automobile liability insurance.
The inclusion of vandalism and malicious mischief insurance in the required coverage suggests that City Publications recognizes the risk of such events impacting a franchisee's business. By mandating this coverage, City Publications aims to protect both the franchisee's investment and the overall integrity of the brand. Franchisees should factor in the cost of this insurance when evaluating the financial feasibility of the franchise. Prospective franchisees should inquire about typical costs for this type of coverage in their specific geographic area to ensure they accurately assess their potential expenses.