Who must the general liability and property damage insurance policy protect during the construction of an Ella Cafe franchise?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
- (ii) During construction, Franchisee must maintain general liability and property damage insurance of the type and with the limits Franchisor requires, protecting Franchisee and Franchisor and its Affiliates and their respective partners, shareholders, directors, agents, and employees.
Such policy or policies must be written by a responsible insurer or insurers acceptable to Franchisor and must contain a waiver of subrogation in favor of Franchisor and its Affiliates, and their respective partners, shareholders, directors, agents, and employees.
Franchisee must notify Franchisor in writing when construction begins and thereafter must provide progress reports when, and in the form, required by Franchisor.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, during the construction of the Coffee House, the general liability and property damage insurance must protect the franchisee, Ella Cafe, its Affiliates, and their respective partners, shareholders, directors, agents, and employees.
This requirement ensures that multiple parties associated with the franchise are protected from potential liabilities and damages that may arise during the construction phase. It is common practice in franchising to require franchisees to maintain insurance coverage that protects not only their own interests but also those of the franchisor and related parties.
The policy must be written by an insurer acceptable to Ella Cafe and include a waiver of subrogation in favor of Ella Cafe, its affiliates, partners, shareholders, directors, agents, and employees. Additionally, the franchisee is required to notify Ella Cafe in writing when construction begins and provide progress reports as required by Ella Cafe.