For Mr. Sandless franchisees, which entities must be named as additional insured on the Certificate of Insurance?
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.
If you fail to obtain or maintain the required insurance, we have the right, but are not obligated, to obtain and maintain such insurance coverage on your behalf and to charge you for such coverage, together with a service fee which shall not exceed eighteen percent (18%) of the insurance premium. There is no assurance that the minimum insurance requirements will be adequate to satisfy your needs.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, franchisees must provide a Certificate of Insurance before their business opens and upon each renewal. This certificate must name Mr. Sandless and its respective officers, directors, employees, and agents as additional insured parties.
Mr. Sandless should be named as an additional insured for ongoing operations as well as completed operations. The FDD specifies that this is accomplished by ISO forms CG2010 (7/04) and CG2037 (7/04) or equivalent forms.
The insurance policies obtained by the franchisee should waive all rights of subrogation against Mr. Sandless, and Mr. Sandless must be named as an additional insured on a primary and non-contributory basis. Failure to comply with these insurance requirements is grounds for termination of the franchise agreement. If a franchisee fails to obtain or maintain the required insurance, Mr. Sandless has the right, but not the obligation, to obtain and maintain such coverage on the franchisee's behalf and to charge the franchisee for the coverage, along with a service fee not exceeding 18% of the insurance premium. However, the FDD notes that there is no assurance that the minimum insurance requirements will be adequate to satisfy the franchisee's needs.