Is a Ledgers franchisee required to name Ledgers as an additional insured on their insurance policies?

According to Ledgers' 2025 Franchise Disclosure Document, franchisees are required to maintain insurance policies and name Ledgers as an additional insured. The FDD specifies that franchisees must have appropriate insurance coverage to cover certain risks, and the minimum limits of this coverage are detailed in the Ledgers manual. Furthermore, franchisees must provide a certificate of insurance to Ledgers annually, demonstrating that Ledgers is listed as an additional insured on the policy.

This requirement ensures that Ledgers has some protection against potential liabilities arising from the franchisee's operations. By being named as an additional insured, Ledgers can be directly covered by the franchisee's insurance policy in the event of a claim related to the franchisee's actions or business. This is a common practice in franchising, as it helps the franchisor manage risk across the entire franchise system.

For a prospective Ledgers franchisee, this means factoring in the cost of insurance that meets Ledgers' requirements and includes Ledgers as an additional insured. It also means complying with the annual requirement to provide a certificate of insurance to Ledgers. Failure to maintain adequate insurance or to include Ledgers as an additional insured could potentially lead to a breach of the franchise agreement.