Who must Fly Fitness franchisees name as additional insureds on their required insurance policies?

According to Fly Fitness's 2024 Franchise Disclosure Document, franchisees are required to include specific entities as additional insureds on their insurance policies. These entities are Fly Fitness itself, its affiliates, and their members, officers, agents, and employees. This requirement ensures that these parties are protected under the franchisee's insurance coverage for any liabilities that may arise.

The FDD also stipulates that all public liability policies must contain a provision allowing these additional insureds to recover under the policy for any losses caused by the franchisee or their staff. This clause is crucial as it ensures that Fly Fitness and its related parties can claim directly from the franchisee's insurance policy in case of incidents caused by the franchisee's operations.

This requirement is a standard practice in franchising, designed to protect the franchisor from liabilities arising from the franchisee's business operations. By mandating that Fly Fitness and its affiliates be named as additional insureds, the franchisor ensures that it has a direct avenue for compensation in case of any claims related to the franchisee's business activities. Franchisees should understand that this requirement will likely increase their insurance costs, as adding more insured parties generally raises premiums.