What entities must Hyper Kidz franchisees name as additional insureds in their insurance policies?

According to the 2024 Hyper Kidz Franchise Disclosure Document, franchisees are required to name Hyper Kidz and its Affiliates as additional named insureds on their insurance policies. This requirement ensures that Hyper Kidz and its related entities are protected under the franchisee's insurance coverage in the event of a claim.

This provision also mandates that the insurance policies include a waiver of all subrogation rights against Hyper Kidz, its Affiliates, and their respective successors and assigns. Subrogation is the right of an insurance company to pursue a third party that caused a loss to the insured. By waiving subrogation rights, the franchisee's insurance company cannot seek to recover any payments made to Hyper Kidz or its Affiliates from these parties, providing them with additional protection.

Furthermore, the insurance policy must stipulate that coverage applies separately to each insured party as if each had been issued a separate policy. This is known as a 'separation of insureds' clause. This clause ensures that the coverage available to Hyper Kidz and its Affiliates is not limited or reduced due to any claims or actions involving the franchisee. This requirement is typical in franchise agreements to protect the franchisor from liabilities arising from the franchisee's operations.