Does Itan require that its owners, officers, and directors be named as additional insureds on the franchisee's insurance policies?

According to Itan's 2025 Franchise Disclosure Document, franchisees are required to secure insurance coverage and policies that include specific endorsements. These endorsements must name Itan and its owners, officers, and directors as additional insureds. This requirement means that in the event of a claim, Itan's leadership would be protected under the franchisee's insurance policy, offering them a layer of financial security against potential liabilities arising from the franchisee's operations.

In addition to being named as additional insureds, the franchisee's insurance policy must also waive all subrogation rights against Itan. This waiver prevents the insurance company from pursuing Itan to recover any payments made on a claim. Furthermore, Itan requires that they receive 30 days' prior written notice if there are any changes to the policy, such as termination, expiration, cancellation, or modification. This advance notice allows Itan to ensure continuous coverage and address any potential gaps in insurance protection.

These insurance requirements are fairly standard in franchising. Franchisors typically implement such measures to protect their brand and business interests from potential liabilities arising from franchisee operations. By mandating specific insurance coverage and endorsements, Itan aims to mitigate risks and ensure that both the franchisee and the franchisor are adequately protected.