What are the requirements for Desi District insurance policies regarding Desi District Franchising LLC and its affiliates?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
Your policies (other than Workers Compensation) must list us and our affiliates as an additional insured, must include a waiver of subrogation in favor of us and our affiliates, must be primary and non-contributing with any insurance carried by us or our affiliates, and must stipulate that we receive 30 days' prior written notice of cancellation.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 26–29)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, franchisees are required to maintain specific insurance policies, and these policies must include certain protections for Desi District Franchising LLC and its affiliates.
The insurance policies, with the exception of Workers Compensation, must list Desi District and its affiliates as additional insured parties. This means that Desi District and its affiliates are protected under the franchisee's insurance coverage for covered claims.
Additionally, the franchisee's insurance policies must include a waiver of subrogation in favor of Desi District and its affiliates. This prevents the insurance company from pursuing Desi District or its affiliates to recover any payments made on a claim. The franchisee's insurance must also be primary and non-contributing with any insurance carried by Desi District or its affiliates, meaning the franchisee's insurance pays out first without requiring Desi District's insurance to contribute. Finally, Desi District must receive 30 days' prior written notice of cancellation of any of the franchisee's insurance policies.