Who must Mr. Sandless franchisees name as an additional insured on their insurance policy?
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, franchisees must name Mr. Sandless and its respective officers, directors, employees, and agents as an additional insured on their insurance policies. This requirement is in place to protect Mr. Sandless from potential liabilities arising from the franchisee's operations.
Specifically, Mr. Sandless requires franchisees to provide a Certificate of Insurance before their business opens and upon each renewal, explicitly naming Mr. Sandless and its related parties as additional insureds. The coverage should extend to both ongoing operations and completed operations, utilizing ISO forms CG2010 (7/04) and CG2037 (7/04) or equivalent. 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 adhere to these insurance requirements can lead to termination of the franchise agreement, highlighting the importance of compliance. This type of requirement is common in franchising, as it provides an added layer of protection for the franchisor against potential lawsuits or claims arising from the franchisee's business activities. Prospective franchisees should carefully review the insurance requirements and ensure they can obtain the necessary coverage to remain in compliance with the franchise agreement.