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

According to Desi District's 2024 Franchise Disclosure Document, the franchisee's insurance policies, excluding Workers Compensation, must include a waiver of subrogation in favor of Desi District Franchise Group and its affiliates. This requirement ensures that Desi District and its affiliates are protected from claims arising from the franchisee's insurance coverage.

In practical terms, a waiver of subrogation means that the insurance company of the Desi District franchisee agrees not to seek recovery from Desi District Franchise Group or its affiliates for any payments made to cover a loss. This is a common practice in franchising to protect the franchisor from potential liabilities related to the franchisee's operations.

Additionally, the franchisee's policies must list Desi District Franchise Group and its affiliates as an additional insured, be primary and non-contributing with any insurance carried by Desi District Franchise Group or its affiliates, and stipulate that Desi District Franchise Group shall receive 30 days' prior written notice of cancellation. These stipulations further safeguard the franchisor's interests and ensure they are promptly informed of any changes to the franchisee's insurance coverage.