Are Gokhale Method and its Affiliates required to be named as additional insureds on all insurance policies?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
You must maintain in force commercial general liability insurance protecting you, us, and the parties' respective officers, directors, partners, agents and employees against any demand or claim with respect to personal injury, death or property damage, business interruption, or any loss, liability or expense whatsoever arising or occurring upon or in connection with the Franchised Business, including, but not limited to, comprehensive general liability insurance, property insurance (including, but not limited to, fire, vandalism, and malicious mischief insurance for the replacement value of the Franchised Business and its contents), casualty insurance, business interruption insurance, statutory workers' compensation insurance, and automobile insurance coverage for all vehicles used in connection with the operation of the Franchised Business. All insurance policies must: (1) be issued by carriers approved by us; (2) contain the types and minimum amounts of coverage, exclusions and maximum deductibles as we prescribe periodically; (3) name us and our Affiliates as additional insureds; (4) provide for 30 days' prior written notice to us of any material modification, cancellation or expiration of such policy; and (5) include such other provisions as we may require periodically. We do not require you to purchase insurance from any particular source.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 15–17)
What This Means (2024 FDD)
According to Gokhale Method's 2024 Franchise Disclosure Document, franchisees are required to include Gokhale Method and its affiliates as additional insureds on their insurance policies. This requirement is part of maintaining adequate insurance coverage for the franchised business.
The insurance coverage must protect Gokhale Method, its affiliates, and their respective officers, directors, partners, agents, and employees against any demand or claim related to personal injury, death, property damage, business interruption, or any loss, liability, or expense arising from the operation of the Gokhale Method franchised business. This includes comprehensive general liability insurance, property insurance, casualty insurance, business interruption insurance, statutory workers' compensation insurance, and automobile insurance coverage for all vehicles used in connection with the business.
The insurance policies must be issued by carriers approved by Gokhale Method and contain the types and minimum amounts of coverage, exclusions, and maximum deductibles as prescribed by Gokhale Method periodically. Additionally, the policies must provide for 30 days' prior written notice to Gokhale Method of any material modification, cancellation, or expiration of the policy. These stipulations ensure that Gokhale Method is protected from potential liabilities associated with the franchisee's business operations and that they are informed of any changes to the insurance coverage.