Must the franchisee's insurance policies be primary and non-contributing with any insurance carried by Fly To Fit Franchise or its affiliates?

According to Fly To Fit's 2024 Franchise Disclosure Document, franchisees are required to maintain specific insurance policies, and these policies, with the exception of Workers Compensation, must adhere to certain conditions. One of these conditions is that the franchisee's insurance policies must be primary and non-contributing with any insurance carried by Fly To Fit Franchise or its affiliates. This means that in the event of a claim, the franchisee's insurance coverage must be exhausted before any insurance held by Fly To Fit Franchise or its affiliates is utilized.

In addition to being primary and non-contributing, the franchisee's insurance policies must also list Fly To Fit Franchise and its affiliates as additional insured parties. This provides an added layer of protection for Fly To Fit Franchise, as they can be directly covered under the franchisee's policy. The policies must also include a waiver of subrogation in favor of Fly To Fit Franchise and its affiliates, preventing the insurance company from pursuing Fly To Fit Franchise for recovery of claim payments.

Furthermore, Fly To Fit Franchise requires that they receive 30 days' prior written notice of cancellation of the franchisee's insurance policies. This allows Fly To Fit Franchise ample time to ensure that the franchisee obtains replacement coverage, maintaining continuous protection for both parties. Franchisees must also provide Certificates of Insurance to Fly To Fit Franchise before opening their business and upon annual renewal of their insurance coverage, as well as at any time upon request, demonstrating proof of the required coverage.