factual
Is Fitstop required to contribute financially to the insurance coverage obtained by the franchisee?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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, Fitstop is not required to contribute financially to the insurance coverage obtained by the franchisee. The franchisee is required to name Fitstop as an additional insured on their insurance policies. The FDD specifies that Fitstop's status as an additional insured means there is no requirement for Fitstop to financially contribute to, or be liable for, the franchisee's insurance coverage. This applies to Comprehensive General Liability and Excess or Umbrella Insurance, covering both ongoing and completed operations.
Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only.
It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.