What requirement does Eos Worldwide have regarding the insurance coverage being primary?
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.
Source: Item 23 — RECEIPTS (FDD pages 74–246)
What This Means (2025 FDD)
According to the 2025 FDD, Eos Worldwide requires that the franchisee's insurance coverage be primary, without the right of contribution from any of Eos Worldwide's insurance. This means that in the event of a claim, the franchisee's insurance policy must be the first one to respond and pay out, before any insurance held by Eos Worldwide is considered.
Additionally, any additional insured coverage must also be primary, without the right of contribution from any of Eos Worldwide’s insurance, and must be as broad as the coverage provided to the franchisee as the named insured. This ensures that Eos Worldwide and its related parties are fully protected under the franchisee's insurance policy, with coverage that is at least as comprehensive as what the franchisee receives.
Furthermore, the additional insured coverage must include coverage for ongoing and completed operations, not be limited to vicarious liability, and extend to the negligent acts, errors, or omissions of Eos Worldwide or other additional insureds. This provision aims to provide extensive protection to Eos Worldwide, covering a wide range of potential liabilities that may arise from the franchisee's operations. This requirement is in place to protect Eos Worldwide from potential liabilities arising from the franchisee's operations and to ensure that the franchisee's insurance is the primary source of coverage in case of a claim.