Who must Fitstop franchisees name as additional insureds on their insurance policies?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 8.2 You shall comply with the following requirements for all insurance policies that you acquire and maintain:
- 8.2.1 You shall name us and any party we designate as additional insureds, as their interests may appear in this Agreement. The additional insured status of us and any party we designate shall be primary and there shall be no requirement for us or any party we designate to financially contribute to or be liable for the insurance coverage. For purposes of Comprehensive General Liability and Excess or Umbrella Insurance, the status of us and any party we designate as an additional insured shall apply to both ongoing and completed operations coverage.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees must name Fitstop USA, Inc. and any other party that Fitstop designates as additional insureds on their insurance policies. The FDD specifies that this additional insured status applies to Comprehensive General Liability and Excess or Umbrella Insurance, covering both ongoing and completed operations.
This requirement means that Fitstop and its designated parties receive direct protection under the franchisee's insurance policies. Should a claim arise related to the Fitstop franchise operations, these additional insureds can seek coverage directly from the franchisee's insurer. This arrangement is designed to protect Fitstop from potential liabilities associated with the franchisee's business activities.
The FDD also states that the additional insured status of Fitstop and any party it designates will be primary, meaning the franchisee's insurance will be the first to respond to any claims, without requiring Fitstop or its designated parties to contribute financially or be liable for the insurance coverage. This clause ensures that Fitstop's interests are prioritized in the event of a claim.
It is important for prospective Fitstop franchisees to fully understand these insurance requirements and to discuss them with their insurance provider to ensure they obtain the necessary coverage and endorsements. Franchisees must also provide evidence of premium payments and duplicate copies of policies to Fitstop no less than 30 calendar days before opening for business or 30 calendar days before the expiration date of an existing policy.