What is the required coverage amount for Employer Practices Liability Insurance for a Mr. Sandless franchise, naming the Franchisor as co-defendant?

According to the 2025 Mr. Sandless Franchise Disclosure Document, franchisees are required to maintain Employer Practices Liability Insurance that names Mr. Sandless as a co-defendant. The minimum coverage amount must be One Million Dollars ($1,000,000). This insurance covers employment wrongful acts, including third-party liability for harassment and discrimination of non-employees.

In addition to this specific coverage, Mr. Sandless requires franchisees to secure several other types of insurance, including General Liability ($500,000 per occurrence and $1,000,000 aggregate limit), Auto Liability ($500,000 Combined Single Limit), and Workers Compensation/Employers Liability with state statutory limits. Franchisees must also obtain On-Site Limited Warranty Care, Custody, Control Coverage and Property coverage for owned or leased property and equipment.

Mr. Sandless must be named as an additional insured on all policies, and franchisees must provide a Certificate of Insurance before opening their business and upon each renewal. The insurance policies should also waive all rights of subrogation against Mr. Sandless, and failure to comply with these insurance requirements can result in termination of the franchise agreement. These requirements ensure that both the franchisee and Mr. Sandless are protected from potential liabilities and claims that may arise during the operation of the business.