Does Mr. Sandless require a per project aggregate limit for General Liability insurance?

According to Mr. Sandless's 2025 Franchise Disclosure Document, franchisees are required to maintain General Liability insurance with specific limits. The required coverage includes $500,000 per occurrence and a $1,000,000 aggregate limit. Importantly, Mr. Sandless mandates that this General Liability insurance includes a "per project aggregate." This means that the $1,000,000 aggregate limit applies separately to each individual project undertaken by the franchisee. The policy must also include contractual liability coverage for both direct and vicarious liability claims.

In practical terms, the per project aggregate requirement offers additional protection for both the franchisee and Mr. Sandless. If a franchisee faces multiple claims arising from different projects within the same policy period, the per project aggregate ensures that each project has its own $1,000,000 limit available to cover those claims. Without this, the total $1,000,000 aggregate could be exhausted by a single large claim or multiple smaller claims from one or more projects, potentially leaving the franchisee underinsured for subsequent incidents.

Beyond General Liability, Mr. Sandless also requires franchisees to maintain other insurance coverages, including On-Site Limited Warranty Care, Custody, Control Coverage, Property coverage, Auto Liability ($500,000 Combined Single Limit), Workers Compensation/Employers Liability (state statutory limits), and Employer Practices Liability Insurance ($1,000,000). Mr. Sandless must be named as an additional insured on these policies for ongoing and completed operations. Franchisees must provide a Certificate of Insurance before opening their Business and upon each renewal. Failure to meet these insurance requirements can result in termination of the franchise agreement.