When must a Mr. Sandless franchisee provide a Certificate of Insurance to the franchisor?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
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 requirements imposed is grounds for termination of the franchise agreement.
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, a franchisee must provide a Certificate of Insurance to Mr. Sandless before their business opens and upon each insurance policy renewal. This certificate must name Mr. Sandless, including its officers, directors, employees, and agents, as an additional named insured.
Mr. Sandless also requires that they be named as an additional insured for ongoing and completed operations, which is achieved through ISO forms CG2010 (7/04) and CG2037 (7/04) or their equivalents. Furthermore, Mr. Sandless must be named as an additional insured on a primary and non-contributory basis, and the franchisee's insurance policies should waive all rights of subrogation against Mr. Sandless.
Failure to comply with these insurance requirements can lead to termination of the franchise agreement. This highlights the importance of securing and maintaining adequate insurance coverage as specified by Mr. Sandless to protect both the franchisee's business and the franchisor's interests. Franchisees should carefully review the insurance requirements outlined in the Operations Manual and ensure they understand and can meet these obligations.