Who must Eos Worldwide franchisees name as additional insureds on their insurance policies?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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.
Source: Item 23 — RECEIPTS (FDD pages 74–246)
What This Means (2025 FDD)
According to Eos Worldwide's 2025 Franchise Disclosure Document, franchisees must name Eos Worldwide, its affiliates, and their respective officers, directors, managers, partners, members, affiliates, subsidiaries, employees, and agents as additional insureds on their insurance policies, as permitted by applicable law. This coverage is secured through an endorsement or as specified in the Operations Manual.
This requirement ensures that Eos Worldwide and its related parties are protected under the franchisee's insurance policies against potential liabilities arising from the franchisee's operations. The additional insured coverage must be primary, meaning it pays out before any insurance Eos Worldwide holds, and it must be as broad as the coverage provided to the franchisee.
Furthermore, the coverage must include both ongoing and completed operations and extend to negligent acts, errors, or omissions by Eos Worldwide or other additional insureds. This provision prevents limitations on coverage related to vicarious liability. Franchisees must ensure their insurance policies meet these requirements to maintain compliance with the franchise agreement.
It is important for prospective franchisees to carefully review the insurance requirements outlined in the Franchise Agreement and Operations Manual and consult with their insurance advisors to ensure they obtain adequate coverage that meets Eos Worldwide's stipulations. Franchisees are also responsible for providing annual evidence of insurance compliance to Eos Worldwide or more frequently if requested.