Is a Goldfish Swim School developer's obligation to maintain insurance limited by any insurance maintained by Goldfish Swim School?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
- E. Developer's obligation to obtain and maintain insurance or to indemnify any of Our Indemnitees shall not be limited by reason of any insurance which may be maintained by Our Indemnitee, nor shall such insurance relieve Developer of any liability under this Agreement. Developer's insurance shall be primary to any policies maintained by any of Our Indemnitees.
- F. If Developer fails to obtain or maintain the insurance required by this Agreement, as such requirements may be revised from time to time, we may acquire such insurance, and the cost thereof, together with a reasonable fee for our expenses in so acting and interest at one and one-half percent (1.5%) per month from the date acquired, shall be payable by Developer upon notice.
Source: Item 22 — CONTRACTS (FDD pages 76–77)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School Franchise Disclosure Document, a developer's obligation to obtain and maintain insurance is not limited by any insurance that Goldfish Swim School may maintain. The developer's insurance is considered primary to any policies held by Goldfish Swim School.
This means that if a claim arises, the developer's insurance policy will be the first one used to cover the costs, regardless of any insurance coverage Goldfish Swim School might have. This ensures that Goldfish Swim School's own insurance policies are not immediately affected by claims against the developer.
Furthermore, the FDD states that the developer's responsibility to indemnify Goldfish Swim School is also not limited by any insurance Goldfish Swim School may have. The developer remains liable under the agreement, even if Goldfish Swim School has its own insurance coverage. This clause emphasizes the developer's responsibility to secure adequate insurance and to protect Goldfish Swim School from potential liabilities arising from the developer's operations.
If a developer fails to obtain or maintain the required insurance, Goldfish Swim School has the right to acquire such insurance on the developer's behalf. The developer is then responsible for the cost of the insurance, along with a reasonable fee for Goldfish Swim School's expenses and interest at a rate of 1.5% per month from the date the insurance was acquired. This provision ensures that insurance coverage is in place and that the developer bears the financial responsibility for maintaining it.