Must the terms of the business interruption insurance be acceptable to City Publications?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Business interruption insurance in amounts and with terms acceptable to us.
Miscellaneous
We may negotiate group rates, as appropriate, for purchases of equipment and supplies necessary for the operation of the Franchised Business. This is calculated before any fees to franchise are applied. There are no purchasing or distribution cooperatives which you are required to join.
Although currently we (nor any Affiliate) do not receive revenue or other material consideration from any third-party suppliers as a result of purchases by you or any other franchisee, we retain the right to do so in the future. There are no other approved suppliers in which any of our officers owns an interest.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 16–18)
What This Means (2025 FDD)
According to City Publications's 2025 Franchise Disclosure Document, franchisees are required to carry business interruption insurance, and the terms of this insurance must be acceptable to City Publications. This requirement ensures that the insurance coverage is adequate to protect both the franchisee's and City Publications's interests in the event of a business interruption.
In addition to business interruption insurance, City Publications franchisees must also maintain several other types of insurance, including comprehensive general public liability insurance with a minimum coverage of $1,000,000, "All Risk" coverage insurance on all contents for full "replacement cost", workers' compensation insurance, and automobile liability insurance with a combined single limit of at least $1,000,000. Franchisees must also secure general property damage insurance and trucking, shipping, freight or F.O.B. insurance coverage.
The franchisee is responsible for procuring and maintaining all required insurance policies at their own expense throughout the term of the Franchise Agreement. Furthermore, City Publications must be named as an additional insured and/or loss payee on these policies. Each insurance policy must also contain a waiver of all subrogation rights against City Publications and its successors and assigns. This comprehensive insurance requirement is typical in franchising to protect the franchisor from potential liabilities and ensure business continuity across the franchise system.