Must the Gold Star Company be named as an additional insured in all insurance policies?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
18.1 General Insurance. FRANCHISEE shall procure before the commencement of construction of the Retail Location and maintain in full force and effect during the term of this Agreement and any extension or renewal thereof, at its sole cost and expense, an insurance policy or policies protecting FRANCHISEE and the COMPANY and their respective officers, directors and employees against any and all losses, liabilities, claims, costs and expenses from fire, personal injury, theft, death, property damage, or other damaging or injurious occurrence, arising out of or in connection with the condition, operation, use or occupancy of the Business and the Retail Location. The COMPANY shall be named as an additional insured in all such policies and there shall be no subrogation of any person to any claims against the COMPANY. Such policy or policies shall be written by a responsible insurance company or companies and shall be in such form and contain such limits of liability as shall be satisfactory to the COMPANY. Such policy or policies shall conform with the requirements set forth in the Manual or otherwise in writing from the COMPANY. The insurance afforded by the aforementioned public liability policies shall not be limited in any way by reason of any insurance which may be maintained by the COMPANY.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, franchisees are required to procure and maintain insurance policies throughout the term of their agreement. These policies must protect both the franchisee and Gold Star, including their respective officers, directors, and employees, against losses, liabilities, claims, costs, and expenses related to the business and the retail location.
The critical point is that Gold Star must be named as an additional insured in all such insurance policies. This requirement ensures that Gold Star has direct protection under the franchisee's insurance coverage. Furthermore, the policies must waive any rights of subrogation against Gold Star, preventing the insurance company from pursuing claims against Gold Star on behalf of the franchisee.
The insurance policies must be written by a responsible insurance company and conform to the requirements set forth in the manual or in writing from Gold Star. Franchisees must provide certificates of insurance to Gold Star before construction commences and before the retail location opens, with at least thirty days' prior written notice to Gold Star before any cancellation or alteration of the policies. Gold Star also retains the right to modify the insurance requirements, such as increasing minimum coverage or requiring additional types of insurance, with thirty days' written notice to the franchisee.