Does Mr. Sandless require that they be named as an additional insured on a primary and non-contributory basis?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
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 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 are required to include Mr. Sandless as an additional insured on their insurance policies on a primary and non-contributory basis. This requirement means that Mr. Sandless's insurance coverage will be primary to the franchisee's coverage, and Mr. Sandless's insurer will not seek contribution from the franchisee's insurance company in the event of a claim.
Mr. Sandless also mandates that franchisees provide a Certificate of Insurance before opening their business and upon each renewal, naming Mr. Sandless and its officers, directors, employees, and agents as additional named insureds. The FDD specifies that Mr. Sandless should be named as an additional insured for ongoing operations as well as completed operations, using ISO forms CG2010 (7/04) and CG2037 (7/04) or equivalent. Franchisees' insurance policies must also waive all rights of subrogation against Mr. Sandless.
Failure to comply with Mr. Sandless's insurance requirements is grounds for termination of the franchise agreement. This underscores the importance of securing and maintaining the required insurance coverage throughout the term of the franchise agreement. Franchisees should carefully review the insurance requirements outlined in the Operations Manual and ensure they understand and comply with all mandates to avoid potential penalties, including termination of their franchise agreement.