Must the insurance company providing the policies for a City Wide franchise be satisfactory to City Wide?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
see's sole expense and maintain in full force and effect during the Term of this Agreement, an insurance policy or policies protecting Franchisee and CITY WIDE, and their officers, directors, partners and employees against any loss, liability, personal injury, death, or property damage or expense whatsoever arising or occurring upon or in connection with the Franchised Business, as CITY WIDE may reasonably require for its own and Franchisee's protection. Franchisee must name CITY WIDE as an additional insured in such policy or policies.
- 17.2 Such policy or policies will be written by an insurance company satisfactory to CITY WIDE in accordance with standards and specifications set forth in the Operating Manual or otherwise in writing, and will include, at a minimum (except as different coverages and policy limits may reasonably be specified for all franchisees from time to time by CITY WIDE in the Operating Manual or otherwise in writing) the following: comprehensive general liability insurance, hired/non-hired auto coverage, general liability umbrella policy, cyber insurance, employee dishonesty/crime policy, errors and omissions insurance, employment practices liability insurance, workers' compensation insurance (as determined by state of Franchised Business location), and business interruption insurance. The insurance afforded by the policy or policies respecting liability will not be limited in any way by reason of any insurance which may
be maintained by CITY WIDE. Within six (6) months after the signing of this Agreement, but in no event later than the date on which Franchisee acquires an interest in the real property on which Franchisee will develop and operate the Franchised Business, Franchisee must furnish CITY WIDE for approval a certificate of insurance showing compliance with the foregoing requirements. Such certificate will state that such policy or policies will not be canceled or altered without at least thirty (30) days prior written notice to CITY WIDE and will reflect proof of payment of premiums. Franchisee will also submit copies of such insurance policies.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the insurance policies a franchisee obtains must be written by an insurance company that City Wide finds satisfactory. City Wide specifies the standards and specifications for these insurance policies in the Operating Manual or in writing.
The required insurance coverage includes comprehensive general liability insurance, hired/non-hired auto coverage, a general liability umbrella policy, cyber insurance, an employee dishonesty/crime policy, errors and omissions insurance, employment practices liability insurance, workers' compensation insurance, and business interruption insurance. City Wide may modify these coverage requirements and policy limits for all franchisees from time to time, as specified in the Operating Manual or in writing.
A City Wide franchisee must provide City Wide with a certificate of insurance for approval within six months of signing the agreement, and no later than when the franchisee acquires an interest in the real property where they will operate the franchised business. This certificate must confirm that the policy will not be canceled or altered without at least thirty days' prior written notice to City Wide and must show proof of premium payments. Franchisees must also submit copies of the insurance policies to City Wide. If a franchisee fails to maintain the required insurance, City Wide has the right, but not the obligation, to procure the insurance and charge the franchisee for the coverage, including a reasonable fee for expenses incurred by City Wide.