Besides Del Taco and its Affiliates, can other parties be required as additional insured on the Del Taco franchisee's insurance policies?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
All insurance policies required hereunder of the Franchisee: (a) shall be primary and Del Taco's insurance shall be non-contributory; (b) shall be issued by an insurance company(ies) with a rating of not less than "A-VIII" in the current A.M. Best Insurance Rating Guide or approved by Del Taco; (c) shall name Del Taco and its Affiliates, and any other parties as Del Taco may request as "additional insureds," and shall contain an "Additional Insured-Designated Person or Organization" endorsement (or its equivalent), except workers' compensation insurance only, without any qualifying language; (d) shall provide that the insurance cannot be canceled, materially changed, or non-renewed, except upon thirty (30) days' advance written notice to Del Taco; and (e) shall contain a waiver of subrogation rights of the insurer(s) against Del Taco, which waiver shall be effective regardless of whether any loss is caused by the act, omission or negligence of Del Taco, and shall contain a "Waiver of Transfer of Rights of Recovery Against Others" endorsement (or its equivalent). Franchisee shall require any independent contractors to have sufficient insurance specific to the work they are performing for the Franchisee. Franchisee understands and acknowledges that the insurance requirements set forth herein are in addition to and do not modify or replace any duty of the Franchisee to defend and/or indemnify Del Taco as set forth in this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, franchisees may be required to include parties other than Del Taco and its affiliates as additional insureds on their insurance policies. Specifically, Del Taco can request that franchisees name other parties as additional insureds on their insurance policies.
This requirement means that a Del Taco franchisee's insurance policy must protect these additional insured parties, potentially including landlords or other entities Del Taco designates. This ensures that these parties are covered under the franchisee's insurance for liabilities related to the Del Taco restaurant operations.
The franchisee is responsible for ensuring that all required insurance policies name Del Taco, its affiliates, and any other parties Del Taco requests as additional insureds. Failing to comply with this requirement could result in a breach of the franchise agreement and potential penalties.