How should the additional insured coverage be structured in relation to the franchisee's coverage for Eos Worldwide?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
The insurance must be primary coverage without the right of contribution from any of our insurance.
- (d) Insurance policies required under this Agreement and the Operations Manual must name, as permitted by applicable law, us, our affiliates and our and their respective officers, directors, managers, partners, members, affiliates, subsidiaries, employees, and agents as additional insureds, through an endorsement or otherwise, as provided in the Operations Manual.
Additional insured coverage must also be primary without the right of contribution from any of our insurance and must be as broad as the coverage provided to the franchisee as the named insured.
Additional insured coverage shall include coverage for ongoing and completed operations, and shall not be limited to vicarious liability and shall extend to (and there shall be no endorsement limiting coverage for) the negligent acts, errors or omissions of us or other additional insureds.
(e) Your obligation to obtain and maintain insurance shall not be limited in any way by reason of any insurance that may be maintained by us, nor shall the existence or non-existence of any insurance relieve you of liability under the indemnification provisions set forth in this Agreement.
(f) You shall provide, annually, or more frequently if requested by us, evidence of insurance showing compliance with our insurance requirements, in the manner we provide in the Operations Manual or otherwise designate from time to time.
Our receipt, review or verification of certain elements of your insurance does not in any way reduce or eliminate your obligations to fully comply with all of the insurance requirements set forth in this Agreement and/or in the Operations Manual.
It is your sole obligation to fully comply with these insurance requirements and it is your sole obligation to confirm with your insurance providers that your policies are in compliance.
Source: Item 23 — RECEIPTS (FDD pages 74–246)
What This Means (2025 FDD)
According to Eos Worldwide's 2025 Franchise Disclosure Document, the additional insured coverage must be structured in a specific way to protect both the franchisee and Eos Worldwide. The franchisee's insurance coverage must be primary, meaning it pays out first without seeking contribution from any insurance Eos Worldwide may have.
Furthermore, the additional insured coverage, which includes Eos Worldwide, its affiliates, and their respective officers, directors, managers, partners, members, subsidiaries, employees, and agents, must also be primary. This means that Eos Worldwide's coverage as an additional insured will pay out before any insurance Eos Worldwide holds independently. The additional insured coverage must be as broad as the coverage provided to the franchisee as the named insured.
This coverage must include both ongoing and completed operations and cannot be limited to just vicarious liability. It must extend to cover negligent acts, errors, or omissions by Eos Worldwide or other additional insureds, with no endorsements limiting this coverage. This ensures that Eos Worldwide is protected against liabilities arising from the franchisee's operations, while also ensuring that the franchisee's insurance is the primary source of coverage. It is the franchisee's sole obligation to ensure their policies comply with these requirements.