Who must be named 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, Del Taco and its Affiliates, and any other parties as Del Taco may request, must be named as additional insureds on the franchisee's insurance policies.
This requirement ensures that Del Taco and its related entities are protected under the franchisee's insurance coverage, minimizing their financial risk in the event of a claim. The franchisee is responsible for securing the appropriate endorsements to the insurance policies to reflect this additional insured status.
Furthermore, the insurance policies must include an "Additional Insured-Designated Person or Organization" endorsement (or its equivalent), except for workers' compensation insurance. The franchisee must provide Del Taco with evidence of these insurance coverages, including Certificates of Insurance and any required policy endorsements, before opening the restaurant and throughout the term of the franchise agreement.