Who is named as an additional insured on the insurance policies procured by a Fly Fitness franchisee?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 15.5 Additional Insured.
All required insurance policies shall name Franchisor and their affiliates and their members, officers, agents, and employees as additional insureds as their interests may appear.
All public liability policies shall contain a provision that the additional insureds, although named as insureds, shall nevertheless be entitled to recover under such policies on any loss caused by Franchisee or Franchisee's servants, agents, or employees.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the franchisee is required to include specific entities as additional insureds on their insurance policies. These entities include Fly Fitness Franchises, L.L.C., its affiliates, and their members, officers, agents, and employees.
This requirement means that the franchisee's insurance policies must extend coverage to protect these named parties against potential liabilities arising from the operation of the Fly Fitness franchise. This is a common practice in franchising, as it provides an additional layer of protection for the franchisor and related parties against claims related to the franchisee's business activities.
The public liability policies obtained by the Fly Fitness franchisee must contain a provision that allows the additional insureds to recover under the policy for any loss caused by the franchisee or their staff. This ensures that the franchisor and its related parties can seek compensation directly from the franchisee's insurance policy in the event of an incident caused by the franchisee's actions or negligence. This requirement protects Fly Fitness and its related parties from financial losses due to the franchisee's operational risks.