On what basis must Mr. Sandless be named as an additional insured on the franchisee's insurance policy?

be no restriction on our use of these funds.

Insurance

You must obtain and maintain insurance meeting our requirements and all policies must name us as an additional insured. Our then-current insurance requirements will be included in the Operations Manual, and may change during the term of your Franchise Agreement. You must comply with any changes we mandate for insurance coverages. Our current minimum insurance requirements include:

• o General Liability including Personal and Advertising Liability is required with limits of $500,000 per occurrence and $1,000,000 aggregate limit, with a per project aggregate. The policy should include contractual liability covering claims from both direct and vicarious liability.
• o Per Project Aggregate. This will provide you with a separate aggregate limit of liability for each active project.
• o On-Site Limited Warranty Care, Custody, Control Coverage. This insurance is intended to provide you with coverage for property damage to real or personal property of others while in the care, custody, or control of the franchisee. Also provides limited coverage for your work.
• o Property coverage. Any owned or leased property, including equipment used at various jobsites, should be covered by a comprehensive property insurance policy.
• o Auto Liability is required with limits of $500,000 Combined Single Limit on all owned, hired and non-owned vehicles. Autos should be titled and registered in your company name.
• o Workers Compensation/Employers Liability with state statutory limits.
• o Employer Practices Liability Insurance that names Franchisor as co-defendant in the amount of One Million Dollars ($1,000,000) for employment wrongful acts, including third party liability for harassment and discrimination of non-employees.

In addition to the minimum insurance coverages described above, we also have the following minimum requirements:

• You must provide us with a Certificate of Insurance before your Business opens and upon each renewal naming us and our respective officers, directors, employees and agents as an additional named insured.
• We should be named as an additional insured for ongoing operations as well as completed operations. This is accomplished by ISO forms CG2010 (7/04) and CG2037 (7/04) or equivalent.
• We must be named as an additional insured on a primary and non-contributory basis.
• Your insurance policies should waive all rights of subrogation against us.
• Failure to comply with our insurance

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 15–18)