What are the requirements for the insurance company that provides the insurance policies for Mr. Sandless franchisees?

According to Mr. Sandless's 2025 Franchise Disclosure Document, the insurance policies that franchisees are required to obtain must be written by an insurance company that is acceptable to Mr. Sandless. Additionally, Mr. Sandless, its affiliates, and their respective officers, directors, agents, attorneys, and employees must be named as additional insured parties on each policy. The insurance policies must also contain a waiver of subrogation in favor of these additional insured parties. Franchisees are required to provide renewal certificates to Mr. Sandless each year. Furthermore, all policies must stipulate that they cannot be canceled, terminated, modified, or reduced in terms without proper notification.

These requirements ensure that Mr. Sandless has a degree of control over the insurance coverage obtained by its franchisees, protecting the brand and its affiliates from potential liabilities. By requiring specific endorsements and waivers, Mr. Sandless aims to mitigate risks associated with franchisee operations.

The franchisee bears the responsibility of ensuring their insurance policies meet these criteria and remain compliant throughout the term of their franchise agreement. Failure to maintain adequate insurance coverage with an acceptable insurance company could result in a breach of the franchise agreement and potential penalties.