Who must Learningrx insurance policies insure, besides the Learningrx franchisee?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee must keep in force insurance policies as prescribed by Franchisor in the Operations Manual by an insurance company acceptable to Franchisor at all times during the term of this Agreement and any renewals.
Insurance coverage must include general liability, combined single limit, bodily injury and property damage insurance for premises operations, products liability and all other occurrences against claims of any person, employee, customer, agent or otherwise in an amount per occurrence of not less than such amount set forth in the Operations Manual and adjusted by Franchisor from time to time.
Insurance policies must insure both Franchisee and Franchisor, its officers and directors, as additional named insureds against any liability which may accrue against them by reason of the ownership, maintenance or operation by Franchisee of the Business.
The policies must also stipulate that Franchisor shall receive a thirty (30) day prior written notice of cancellation.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the insurance policies that a franchisee is required to maintain must also include Learningrx, its officers, and directors. This requirement ensures that Learningrx is protected against any liability that may arise from the franchisee's operation of the business. The insurance coverage must include general liability, combined single limit, bodily injury, and property damage insurance for premises operations, products liability, and all other occurrences against claims of any person, employee, customer, agent, or otherwise. The amount of coverage must not be less than the amount set forth in the Operations Manual and adjusted by Learningrx from time to time.
This requirement is a standard practice in franchising, as it protects the franchisor from potential lawsuits or financial losses resulting from the franchisee's actions. It also ensures that the franchisee has adequate insurance coverage to protect themselves and their business. The franchisee is responsible for procuring and paying for all required insurance policies and must provide Learningrx with proof of insurance and payment within thirty days of issuance.
Furthermore, the insurance policies must stipulate that Learningrx shall receive a thirty (30) day prior written notice of cancellation. This provision allows Learningrx to take necessary steps to ensure continuous coverage in the event that a franchisee's policy is canceled. Failure to maintain the required insurance constitutes a material breach of the Franchise Agreement, potentially leading to termination of the agreement.