What entities must Fitstop franchisees name as additional insureds on their insurance policies?

According to Fitstop's 2024 Franchise Disclosure Document, franchisees are required to name Fitstop USA, Inc. and any other party that Fitstop designates as additional insureds on their insurance policies. This requirement ensures that Fitstop and its designated parties are protected under the franchisee's insurance coverage.

The FDD specifies that the additional insured status of Fitstop and any designated party must be primary, meaning that the franchisee's insurance coverage is the first line of defense for any claims. There is no requirement for Fitstop or any party it designates to contribute financially to the insurance coverage or be liable for it. This provision applies to both ongoing and completed operations coverage for Comprehensive General Liability and Excess or Umbrella Insurance.

This requirement is a standard practice in franchising, as it protects the franchisor from liabilities arising from the franchisee's operations. Prospective Fitstop franchisees should understand that they will bear the cost of providing this additional insurance coverage, and they should factor this into their financial planning. It is also important to maintain open communication with Fitstop regarding any designated additional insureds to ensure full compliance with the franchise agreement.