Must Clean Your Dirty Face insurance policies contain a waiver of subrogation rights?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
Each insurance policy for liability coverage must name us and any affiliates we designate as additional named insureds and provide for thirty (30) days' prior written notice to us of a policy's material modification, cancellation or expiration. Each insurance policy must contain a waiver of all subrogation rights against us, our affiliates and their successors and assigns. You must routinely furnish us copies of your Certificates of Insurance or other evidence of your maintaining this insurance coverage and paying premiums. If you fail or refuse to obtain and maintain the insurance we specify, in addition to our other remedies including termination, we may (but are not required to) obtain such insurance for you and your Business on your behalf, in which event you agree to cooperate with us and reimburse us for all premiums, costs and expenses we incur in obtaining and maintaining the insurance, plus a reasonable fee for our time incurred in obtaining such insurance.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, each insurance policy for liability coverage must include a waiver of all subrogation rights against Clean Your Dirty Face, its affiliates, and their successors and assigns. This requirement is part of the insurance obligations that franchisees must adhere to during the term of their Franchise Agreement.
A waiver of subrogation means that the franchisee's insurance company cannot attempt to recover any payments made to cover a loss from Clean Your Dirty Face or its affiliates, even if Clean Your Dirty Face was at fault. This protects Clean Your Dirty Face from potential claims by the franchisee's insurance company.
In practical terms, this requirement ensures that Clean Your Dirty Face is shielded from liability claims that could arise from the franchisee's operations. Franchisees must ensure that their insurance policies explicitly include this waiver to comply with the Franchise Agreement. Failure to maintain the specified insurance, including the waiver of subrogation, can lead to Clean Your Dirty Face obtaining the insurance on behalf of the franchisee, with the franchisee responsible for all associated costs and fees, or even termination of the agreement.