What waiver must be included in a Crab N Spice franchisee's insurance policies?

According to Crab N Spice's 2024 Franchise Disclosure Document, a franchisee's insurance policies (excluding Workers Compensation) must include a waiver of subrogation in favor of Crab N Spice and its affiliates. This means that the insurance company agrees not to pursue Crab N Spice for reimbursement of any claims they pay out to the franchisee.

In addition to the waiver of subrogation, the franchisee's insurance policies must also list Crab N Spice and its affiliates as an additional insured. This provides Crab N Spice with direct coverage under the franchisee's policies. The policies must also be primary and non-contributing with any insurance carried by Crab N Spice or its affiliates, meaning the franchisee's insurance pays out first in the event of a claim.

Finally, the insurance policies must stipulate that Crab N Spice will receive 30 days' prior written notice of cancellation. This allows Crab N Spice time to ensure the franchisee obtains replacement coverage to protect both parties' interests. Franchisees must provide Certificates of Insurance evidencing the required coverage to Crab N Spice prior to opening, upon annual renewal, and at any time upon request.