Who must be named as an additional insured on the Epcon Communities franchisee's general liability insurance policy?

According to the 2025 FDD, Epcon Communities franchisees are required to maintain general liability insurance. Specifically, Epcon Communities Franchising, LLC must be named as an additional insured on the franchisee's general liability insurance policy. The policy must use ISO Additional Insured Endorsement CG2029 (04-13 or 12-19) or its equivalent, which provides premises and completed operations coverage.

This requirement ensures that Epcon Communities has some protection against liability arising from the franchisee's projects. The franchisee is responsible for ensuring this coverage is in place and that the policy includes coverage for liability arising from premises-operations, independent contractors, and products-completed operations. The policy should not contain restrictive endorsements that exclude coverage for residential construction or work performed by subcontractors.

In addition to naming Epcon Communities Franchising, LLC as an additional insured, the franchisee must also name themselves and all Project entities as named insureds on all insurance policies. Franchisees must also make every reasonable effort to seek to have Epcon Communities dismissed or released from liability in the event of any action, suit, proceeding, investigation, inquiry, claim, or demand. This requirement is in place to protect Epcon Communities from potential legal liabilities arising from the franchisee's operations.

It is important for prospective franchisees to understand these insurance requirements and factor the costs of obtaining and maintaining the necessary coverage into their business plan. Failure to comply with these insurance requirements could result in a breach of the franchise agreement and potential legal and financial repercussions.