Must all insurance policies for a Floyds 99 franchise name the franchisor as an additional insured?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
be required to pay the costs of an audit if the audit reflects an underpayment of more than 5% during the period reviewed.
Insurance.
All insurance must meet our standards and specifications and must be written by a responsible carrier or carriers reasonably acceptable to us. You must procure, maintain and provide evidence of certain proscribed levels of liability insurance, unemployment and worker's compensation insurance, employment practices liability insurance, all-risk personal property insurance and cyber liability insurance. You also must provide us with certificates of insurance evidencing your insurance coverage before the opening of your FLOYD'S 99 Shop. All insurance policies must name us as an additional insured and give us at least 30 days prior written notice of termination, amendment or cancellation. You must furnish us with copies of all required insurance policies or other evidence of insurance coverage and payment of premiums as we request periodically. We reserve the right to require you to change the type of insurance you are required to maintain and, upon 60 days prior written notice to you, to revise the required coverage limits.
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Your obligation to obtain and maintain the foregoing insurance policies in the amounts we specify will not be limited in any way by reason of any insurance maintained by us, nor will your performance of that obligation relieve you of liability under the indemnity provisions in the Franchise Agreement.
If you fail to procure or maintain the insurance that we require, we may (but are not required to) obtain the required insurance and charge the cost of the insurance to you. The costs to us of obtaining the insurance, together with a fee for our expenses in so acting, will be payable by you immediately upon notice. The foregoing remedies will be in addition to any other remedies we may have at law or in equity.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 24–29)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, all insurance policies must name the franchisor as an additional insured. This requirement ensures that Floyds 99 is protected against potential liabilities arising from the franchisee's operations. Additionally, franchisees must provide Floyds 99 with at least 30 days prior written notice of any termination, amendment, or cancellation of their insurance policies. This advance notice allows Floyds 99 to take necessary steps to protect its interests in case of changes to the franchisee's insurance coverage.
Before opening a Floyds 99 shop, franchisees must provide certificates of insurance to the franchisor, demonstrating that they have the required insurance coverage in place. Franchisees must also furnish copies of all required insurance policies or other evidence of insurance coverage and payment of premiums as Floyds 99 requests periodically. Floyds 99 retains the right to modify the types of insurance franchisees are required to maintain and revise the required coverage limits, providing 60 days prior written notice.
If a franchisee fails to procure or maintain the required insurance, Floyds 99 has the option, but not the obligation, to obtain the necessary insurance and charge the cost to the franchisee. In addition to the insurance cost, Floyds 99 may also charge a fee for their expenses incurred in obtaining the insurance. These remedies are in addition to any other legal or equitable remedies available to Floyds 99. The franchisee's obligation to maintain the specified insurance policies is not limited by any insurance maintained by Floyds 99, nor does it relieve the franchisee of liability under the indemnity provisions in the Franchise Agreement.