What specific clauses must be included in the insurance policies purchased by a Devon Creek franchisee?

According to Devon Creek's 2024 Franchise Disclosure Document, franchisees are required to secure specific insurance coverage, and these policies must include particular clauses to protect Devon Creek and its affiliates.

Specifically, each insurance policy must name Devon Creek, along with its officers, directors, partners, agents, and employees, as additional insured parties. This ensures that Devon Creek is protected from claims arising from the franchisee's operations. The policies must also contain a waiver of the insurance company's rights of subrogation against Devon Creek, preventing the insurer from pursuing claims against Devon Creek for any payments made on behalf of the franchisee.

Furthermore, the insurance coverage must be Primary Non-Contributory, meaning 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 have to pay the full annual premium in advance, with costs ranging from $2,500 to $7,500 for one year of liability insurance coverage. Devon Creek retains the right to mandate additional types of insurance and coverage as detailed in the Franchise Agreement.