What is the relationship required between an Endless Summer Sweets franchisee's insurance policies and any other insurance?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
Your policies (other than Workers Compensation) must list us and our affiliates as an additional insured, must include a waiver of subrogation in favor of us and our affiliates, must be primary and non-contributing with any
insurance carried by us or our affiliates, and must stipulate that we receive 30 days' prior written notice of cancellation.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 14–16)
What This Means (2024 FDD)
According to Endless Summer Sweets's 2024 Franchise Disclosure Document, a franchisee's insurance policies (excluding Workers Compensation) must adhere to specific conditions regarding their relationship with any insurance held by Endless Summer Sweets or its affiliates.
Specifically, the franchisee's insurance must list Endless Summer Sweets and its affiliates as additional insured parties. This means that Endless Summer Sweets is protected under the franchisee's insurance policy for covered claims. Furthermore, the franchisee's policies must include a waiver of subrogation in favor of Endless Summer Sweets and its affiliates, preventing the insurance company from pursuing Endless Summer Sweets to recover claim payments made to the franchisee.
The franchisee's insurance must be primary and non-contributing with any insurance carried by Endless Summer Sweets or its affiliates. This means that the franchisee's insurance policy is the first one that must pay out in the event of a covered claim, and it cannot require Endless Summer Sweets's insurance to contribute to the payment. Finally, the insurance policies must stipulate that Endless Summer Sweets receives 30 days' prior written notice of cancellation, allowing Endless Summer Sweets time to ensure continuous coverage.