What waiver must be included in a Desi District franchisee's insurance policies (other than Workers Compensation)?

According to Desi District's 2024 Franchise Disclosure Document, a franchisee's insurance policies (excluding Workers Compensation) must include a waiver of subrogation in favor of Desi District Franchise Group and its affiliates. Additionally, Desi District Franchise Group and its affiliates must be listed as an additional insured on the franchisee's policies.

This waiver of subrogation means that the insurance company will not be able to seek recovery from Desi District Franchise Group or its affiliates for any claims they pay out on behalf of the franchisee. This protects Desi District from potential liabilities related to the franchisee's operations.

Furthermore, the franchisee's policies must be primary and non-contributing with any insurance carried by Desi District Franchise Group or its affiliates. This means that the franchisee's insurance will be the first to respond to any claims, and Desi District's insurance will only be used as a secondary layer of coverage, if needed. The franchisee's insurance policy must also stipulate that Desi District Franchise Group will receive 30 days prior written notice of cancellation.

It is common practice in franchising for franchisors to require franchisees to maintain specific insurance coverage and include them as additional insureds on those policies. This helps protect the franchisor's brand and reputation by ensuring that franchisees have adequate insurance coverage and by providing an additional layer of protection for the franchisor.