Who must Gold Star franchisees' general insurance policies protect?
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 secure general insurance policies that protect both the franchisee and Gold Star, along with their respective officers, directors, and employees. This insurance coverage must guard against losses, liabilities, claims, costs, and expenses resulting from incidents such as fire, personal injury, theft, death, property damage, or any other damaging events related to the business's condition, operation, use, or occupancy of the retail location.
Gold Star must be named as an additional insured party in all insurance policies, and there should be no subrogation of claims against Gold Star. The insurance policies must be written by a reputable insurance company and adhere to the form and liability limits that are satisfactory to Gold Star. Furthermore, these policies must comply with the requirements outlined in the manual or any written communication from Gold Star.
The public liability insurance provided by the franchisee should not be limited by any insurance that Gold Star may maintain. This ensures that the franchisee's coverage is comprehensive and adequate, regardless of any existing insurance held by Gold Star. This requirement is typical in franchising, as it protects the franchisor from liabilities arising from the franchisee's operations.