Does Ella Cafe require the franchisor to be named as an additional insured on all insurance policies?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
At its sole expense, Franchisee shall procure within sixty days of the Effective Date, and maintain in full force and effect during the term of this Agreement, insurance as required by state law and as we specify below. All policies (except any workers' compensation insurance) shall expressly name Franchisor as an additional insured, grantor of franchise and loss payee and all shall contain a waiver of all subrogation rights against Franchisor and its successors and assigns. In addition to any other insurance that may be required by applicable law, or by lender or lessor, Franchisee shall procure:
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, franchisees are required to procure and maintain insurance policies during the term of the franchise agreement. These policies, with the exception of workers' compensation insurance, must expressly name Ella Cafe as an additional insured, grantor of franchise, and loss payee.
Furthermore, all insurance policies must include a waiver of all subrogation rights against Ella Cafe and its successors and assigns. This means that the franchisee's insurance company cannot seek to recover any payments made to the franchisee from Ella Cafe in the event of a loss.
In addition to these requirements, franchisees must obtain insurance as required by state law, as well as any other insurance required by a lender or lessor. The specific types and amounts of coverage are determined by Ella Cafe. Franchisees are responsible for procuring this insurance within sixty days of the Effective Date of the Franchise Agreement and maintaining it throughout the term.