What is the purpose of the 'Per Project Aggregate' insurance required for Mr. Sandless franchisees?

According to Mr. Sandless's 2025 Franchise Disclosure Document, franchisees are required to maintain a 'Per Project Aggregate' insurance policy as part of their general liability coverage. This specific type of aggregate limit provides a separate liability limit for each individual project that a Mr. Sandless franchisee undertakes.

In practical terms, this means that if a franchisee has multiple active projects and an incident occurs on one of them leading to a liability claim, the 'Per Project Aggregate' ensures that the franchisee has a dedicated amount of coverage available specifically for that project. This coverage is distinct from the overall general liability aggregate limit, which could be affected by claims arising from other projects. The general liability insurance must include personal and advertising liability with limits of $500,000 per occurrence and a $1,000,000 aggregate limit.

For a prospective Mr. Sandless franchisee, this requirement offers an added layer of financial protection. By having a separate aggregate limit for each project, the franchisee reduces the risk of exhausting their total coverage due to multiple incidents occurring across different job sites. This can be particularly important in the flooring business, where projects can vary in size and complexity, and unforeseen issues can arise.

The Mr. Sandless FDD specifies that the general liability insurance policy should include contractual liability covering claims from both direct and vicarious liability. This means the policy should protect the franchisee from claims arising from their own actions, as well as the actions of others working on their behalf. The 'Per Project Aggregate' is a component of this broader general liability coverage, offering specific protection related to individual projects.