What is the purpose of the 'Per Project Aggregate' insurance requirement for 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 with a separate aggregate limit of liability for each active project.
- o On-Site Limited Warranty Care, Custody, Control Coverage. This insurance is intended to provide you with coverage for property damage to real or personal property of others while in the care, custody, or control of the franchisee. Also provides limited coverage for your work.
- o Property coverage. Any owned or leased property, including equipment used at various jobsites, should be covered by a comprehensive property insurance policy.
- o Auto Liability is required with limits of $500,000 Combined Single Limit on all owned, hired and non-owned vehicles. Autos should be titled and registered in your company name.
- o Workers Compensation/Employers Liability with state statutory limits.
- o Employer Practices Liability Insurance that names Franchisor as co-defendant in the amount of One Million Dollars ($1,000,000) for employment wrongful acts, including third party liability for harassment and discrimination of non-employees.
In addition to the minimum insurance coverages described above, we also have the following minimum requirements:
- 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
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 15–18)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, a 'Per Project Aggregate' is a specific type of general liability insurance requirement. Mr. Sandless requires franchisees to maintain general liability insurance with limits of $500,000 per occurrence and a $1,000,000 aggregate limit. The 'per project aggregate' provides a separate aggregate limit of liability for each active project a franchisee undertakes.
In practical terms, this means that for each individual flooring project a Mr. Sandless franchisee is working on, there is a dedicated $1,000,000 liability coverage. This is beneficial because if one project incurs a significant liability claim, it won't deplete the total aggregate limit available for other projects. This type of insurance structure is especially useful in businesses like Mr. Sandless where franchisees work on multiple projects concurrently.
This requirement helps protect both the franchisee and the franchisor from potentially large claims arising from individual projects. By having a separate aggregate limit for each project, the franchisee is less likely to exhaust their total coverage, and Mr. Sandless, as an additional insured, also benefits from this enhanced protection. Franchisees should understand that failure to comply with Mr. Sandless's insurance requirements is grounds for termination of the franchise agreement.