Who must Cool Binz franchisees name as additional insureds on their general liability insurance policies?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
All general liability insurance policies will name us, BELFOR Franchise Group, LLC, BELFOR USA Group Inc., and our designated affiliates, employees, officers and directors (the "Indemnified Parties") as additional insureds, and will contain no provision which in any way limits or reduces coverage for you if a claim is made by any one or more of the Indemnified Parties, and will extend to and provide indemnity for all obligations assumed by you and all items for which you are required to indemnify us, will be primary to and without right of contribution from any other insurance purchased by the Indemnified Parties, and will provide, by endorsement, that we receive at least 30 days' notice of any intent to cancel or materially alter any policy.
At least ten (10) days before attending Training, commencing the operation of the COOL BINZ Business, whenever a change is made to your policy, and before expiration of any insurance coverage, you must have your insurance provider send us a copy or certificate or other acceptable proof of such insurance.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 31–34)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, franchisees are required to name specific entities as additional insureds on their general liability insurance policies. These entities include Cool Binz itself, BELFOR Franchise Group, LLC, BELFOR USA Group Inc., and their designated affiliates, employees, officers, and directors, collectively referred to as the "Indemnified Parties." This requirement ensures that these parties are protected under the franchisee's insurance coverage for any liabilities arising from the operation of the Cool Binz business.
This insurance policy must not limit or reduce coverage if a claim is made by any of the Indemnified Parties. It must also extend to and provide indemnity for all obligations assumed by the franchisee and all items for which the franchisee is required to indemnify Cool Binz. Furthermore, the policy must be primary and without right of contribution from any other insurance purchased by the Indemnified Parties. This means that the franchisee's insurance will be the first to respond to any claims, regardless of any other insurance the Indemnified Parties may have.
Cool Binz requires that the insurance provider send them a copy or certificate of insurance at least ten days before the franchisee attends training, commences business operations, whenever a change is made to the policy, and before the expiration of any insurance coverage. This ensures that Cool Binz has up-to-date proof of the franchisee's insurance coverage and can verify that it meets the required specifications. This is a common practice in franchising to protect the brand and the franchisor from potential liabilities arising from franchisee operations.