Who must the Degree Wellness Licensed Provider's commercial general liability insurance policy name as an additional insured?

According to Degree Wellness's 2025 Franchise Disclosure Document, the commercial general liability insurance policy that the Licensed Provider is required to maintain must name specific entities as additional insured. This requirement ensures that certain parties are protected under the Licensed Provider's insurance coverage.

The policy must name Management Company, Degree Wellness, and their respective owners, directors, employees, agents, and affiliates as additional insured. This means that these entities are covered by the Licensed Provider's insurance policy for claims arising from the operation of the Degree Wellness studio. The coverage must be on a primary and noncontributory basis, meaning that the Licensed Provider's insurance will be the first to respond to a claim, and it will not seek contribution from the insurance policies of the additional insured parties.

This requirement is a risk management strategy employed by Degree Wellness to protect itself and its related parties from potential liabilities arising from the operations of the Licensed Provider. By being named as additional insured, these parties can directly benefit from the Licensed Provider's insurance coverage in the event of a claim. This arrangement is common in franchising to ensure that the franchisor and its affiliates are protected from liabilities arising from the franchisee's business operations.