Where can I find the then-current insurance requirements for a Mr. Sandless franchise?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
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)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, the then-current insurance requirements are detailed in the Operations Manual, and these requirements may change during the term of the Franchise Agreement. Franchisees must adhere to any mandated changes in insurance coverage.
The FDD specifies several minimum insurance requirements. These include General Liability coverage with limits of $500,000 per occurrence and a $1,000,000 aggregate limit, including coverage for personal and advertising liability. The policy must also cover contractual liability for both direct and vicarious claims. A Per Project Aggregate is required, providing a separate aggregate limit for each active project. On-Site Limited Warranty Care, Custody, Control Coverage is necessary to cover property damage to others' property under the franchisee's care, custody, or control, with limited coverage for the franchisee's work.
Further insurance requirements include Property coverage for owned or leased property and equipment, Auto Liability with a $500,000 Combined Single Limit on all owned, hired, and non-owned vehicles, and Workers Compensation/Employers Liability with state statutory limits. Additionally, Employer Practices Liability Insurance is required, naming Mr. Sandless as a co-defendant, in the amount of $1,000,000 for employment wrongful acts, including third-party liability for harassment and discrimination of non-employees.
Mr. Sandless also mandates that franchisees provide a Certificate of Insurance before opening their Business and upon each renewal, naming Mr. Sandless and its officers, directors, employees, and agents as additional insureds. Mr. Sandless must be named as an additional insured for ongoing and completed operations, accomplished through ISO forms CG2010 (7/04) and CG2037 (7/04) or equivalent, on a primary and non-contributory basis. The insurance policies must waive all rights of subrogation against Mr. Sandless, and failure to comply with these insurance requirements can result in termination of the franchise agreement.