What waiver of subrogation is required in Fitstop franchisees' insurance policies?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 8.2.5 You shall cause the insurer to include as a provision in all insurance policies a waiver of subrogation favoring us, our officers, and our directors.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees are required to ensure that their insurance policies include a waiver of subrogation. This waiver must favor Fitstop, its officers, and its directors.
A waiver of subrogation prevents the insurance company from pursuing Fitstop to recover any payments made to the franchisee for claims. Essentially, Fitstop is protected from being held liable by the franchisee's insurance company for any incidents covered by the franchisee's insurance policy.
This requirement is a fairly standard practice in franchising, as it shields the franchisor from potential liability and financial risk related to the franchisee's operations. Franchisees must ensure their insurance policies comply with this requirement to avoid being in breach of their franchise agreement. It is important for prospective Fitstop franchisees to discuss this requirement with their insurance provider to ensure they can obtain a policy that includes the necessary waiver.