Who must be named as additional insureds on the Fly Fitness franchisee's insurance policies?
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, all required insurance policies must name specific entities as additional insureds. This includes Fly Fitness Franchising, L.L.C., its affiliates, and their members, officers, agents, and employees, ensuring their protection under the franchisee's insurance coverage.
This requirement means that if a claim arises due to the franchisee's actions or the actions of their staff, Fly Fitness and its related parties are entitled to recover under the franchisee's insurance policies. This provision is designed to protect Fly Fitness from potential liabilities related to the franchisee's operations.
For a prospective Fly Fitness franchisee, this translates to higher insurance costs, as adding more insured parties generally increases premiums. It also means carefully reviewing insurance policies to ensure compliance with this requirement and understanding the scope of coverage for additional insureds. Franchisees should consult with their insurance provider to fully understand the implications and costs associated with this requirement.