Is a 'per project aggregate' required for the general liability insurance of a Mr. Sandless franchise?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
overages. 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 wit
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, general liability insurance is required for franchisees, including a per project aggregate. The general liability insurance must include Personal and Advertising Liability with limits of $500,000 per occurrence and a $1,000,000 aggregate limit, with a per project aggregate.
The FDD specifies that the 'per project aggregate' provides a separate aggregate limit of liability for each active project. This means that for each individual Mr. Sandless project a franchisee undertakes, there is a dedicated $1,000,000 liability limit, rather than drawing from a single aggregate limit across all projects.
The policy must also include contractual liability covering claims from both direct and vicarious liability. Additionally, Mr. Sandless requires that each policy be written by an insurance company acceptable to them, and they, their affiliates, and their officers, directors, agents, attorneys, and employees must be named as additional insured parties. The insurance policies must contain a waiver of subrogation in favor of the additional insureds and provide thirty days' prior written notice before any cancellation, termination, modification, or reduction in coverage.