Who must Expense Reduction Analysts franchisees name as an additional insured on their insurance policy?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
| NAME OF FEE1 | AMOUNT OR FORMULA | DUE DATE | REMARKS |
|---|---|---|---|
| fees for each additional IT user account: Microsoft Power B1 $10 E1 (online) $13 E3 (desktop) $28 Dynamics 365 $10 MS teams Audio conferencing software $3 MS teams Premium $8.40 | setup costs and monthly user fees (collectively, the "Technology Fees"). The additional charges may be changed from time to time as set up in the Global Manuals - Information Technology Manual, and you will receive formal notice of any such changes. | ||
| Taxes on Payments to Us | Amount of tax or assessment | When imposed by taxing authority | If any taxing authority, wherever located, imposes any future tax, levy or assessment on any payment you make to us, in addition to all payments due to us, you must pay the tax, levy or assessment. |
| Insurance | Will vary according to circumstances | Upon demand | If you fail to obtain required insurance, we may obtain such insurance at your expense (but are not required to do so) and charge you a service fee to do so. Otherwise, these payments are made directly to your third-party insurance provider. You must name us and any Approved Supplier we designate |
Source: Item 6 — OTHER FEES (FDD pages 13–19)
What This Means (2025 FDD)
According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, franchisees are required to name Expense Reduction Analysts and any Approved Supplier that Expense Reduction Analysts designates as an additional insured on their insurance policies.
This requirement ensures that Expense Reduction Analysts and its approved suppliers are protected from potential liabilities arising from the franchisee's business operations. If a franchisee fails to obtain the required insurance, Expense Reduction Analysts has the option, but not the obligation, to obtain the insurance at the franchisee's expense and charge a service fee for doing so.
This is a fairly standard practice in franchising, as franchisors often require franchisees to maintain adequate insurance coverage and to include the franchisor as an additional insured to mitigate risks and protect the brand's reputation. Franchisees should factor in the cost of insurance, including any additional premiums for naming additional insured parties, when evaluating the overall investment required to start and operate an Expense Reduction Analysts franchise.