What waivers must be included in all insurance policies for a Gold Star franchise?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
All insurance policies must name Gold Star Chili as an additional insured franchisor and contain and include standard waivers of subrogation. Franchisee agrees franchisee's insurance is primary and non-contributory. You cannot commence construction upon or open your Restaurant until you have obtained all the required insurance coverage and provided Gold Star with appropriate certificates of insurance showing your compliance with the requirements set forth above. If you fail to obtain and maintain this insurance coverage, we have the right to procure it on your behalf and to charge you for the cost plus interest. We have the right to increase the minimum coverage, decrease the maximum deductible, or require different or additional kinds of insurance to reflect inflation, changes in standards of liability, higher damage awards, or other relevant changes in circumstances. We must give you at least 30 days' written notice.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 21–25)
What This Means (2025 FDD)
According to the 2025 Gold Star Franchise Disclosure Document, all insurance policies obtained by franchisees must include standard waivers of subrogation. Additionally, Gold Star Chili must be named as an additional insured franchisor on all policies.
In practical terms, the waiver of subrogation prevents the insurance company from pursuing Gold Star to recover any payments made to cover a claim. Naming Gold Star as an additional insured provides them with direct coverage under the franchisee's policy, offering further protection.
The FDD also specifies that the franchisee's insurance coverage is primary and non-contributory, meaning it will be the first source of coverage for any claims, and the franchisee's insurance company cannot seek contribution from any other insurance policies Gold Star may have. Franchisees must provide Gold Star with certificates of insurance to prove compliance with these requirements before commencing construction or opening their restaurant. Failure to maintain the required insurance coverage allows Gold Star to procure insurance on the franchisee's behalf and charge the franchisee for the cost plus interest.