If a City Wide franchisee provides service to a National Account, who is responsible for ensuring that any subcontractors used also carry the required types and coverages of insurance?

According to City Wide's 2025 Franchise Disclosure Document, if a franchisee provides service to a National Account, the franchisee is solely responsible for ensuring that any subcontractors they use also carry the required types and coverages of insurance as dictated by the National Account Contract. This means the franchisee must verify that all subcontractors meet the insurance requirements specified in the agreement with the National Account.

This requirement places a significant responsibility on the City Wide franchisee. They must not only maintain their own insurance coverage but also actively manage and verify the insurance of any subcontractors they employ for National Account services. Failure to ensure proper subcontractor insurance could expose the franchisee to potential liabilities and financial risks if a subcontractor's inadequate coverage results in a claim.

City Wide also retains the right, but not the obligation, to procure insurance coverage for the franchisee if the franchisee fails to do so, and to charge the franchisee for the coverage along with a reasonable fee for expenses incurred. The franchisee is required to promptly notify City Wide of any actual, potential, or threatened claim under any insurance policy and permit City Wide to assume the defense of any such claim.

This requirement is fairly standard in the franchise industry, particularly in service-based franchises where subcontractors are commonly used. Franchisors often require franchisees to ensure adequate insurance coverage for all parties involved in service delivery to protect the brand and mitigate potential liabilities.