Who must Devon Creek franchisees name as additional insured parties on their insurance policies?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
Before you open for business; you must purchase and maintain at your sole cost and expense the insurance coverage that we specify. Each policy must name us, and our respective officers, directors, partners, agents, and employees as additional insured parties, contain a waiver of the insurance company's rights of subrogation against us, and be Primary Non-Contributory. We estimate that you will have to pay your insurance carrier or agent the full annual premium in advance. Insurance costs and requirements may vary widely in different localities. The estimate is
Source: Item 7 — ESTIMATED INITIAL INVESTMENT – START UP FRANCHISEE (FDD pages 16–21)
What This Means (2024 FDD)
According to Devon Creek's 2024 Franchise Disclosure Document, franchisees are required to secure and maintain specific insurance coverage. These policies must include Devon Creek, along with its officers, directors, partners, agents, and employees, as additional insured parties.
Furthermore, the insurance policies must contain a waiver of the insurance company's rights of subrogation against Devon Creek. This means that the insurance company cannot attempt to recover any payments made to the franchisee from Devon Creek, even if Devon Creek's actions contributed to the loss. The policies must also be Primary Non-Contributory, indicating that the franchisee's insurance will be the primary coverage in the event of a claim, and Devon Creek's insurance will not be required to contribute.
The FDD estimates that franchisees will need to pay the full annual insurance premium in advance. The cost of insurance can vary significantly depending on the location. Devon Creek retains the right to mandate additional types of insurance and coverage as detailed in the Franchise Agreement.