What rights must Mr. Sandless' insurance policies waive against the franchisor?

According to Mr. Sandless's 2025 Franchise Disclosure Document, franchisees' insurance policies must waive all rights of subrogation against Mr. Sandless. This requirement means that the insurance company cannot pursue Mr. Sandless to recover any payments made to the franchisee for claims, losses, or damages.

In practical terms, this waiver protects Mr. Sandless from potential lawsuits or claims by the franchisee's insurance provider. For example, if a customer sues a Mr. Sandless franchisee for property damage and the franchisee's insurance company pays out a claim, the insurance company cannot then sue Mr. Sandless to recover those costs, even if Mr. Sandless was partially at fault. This arrangement shifts the full burden of risk onto the franchisee's insurance policy and away from the franchisor.

Franchisees must ensure their insurance policies include this waiver to comply with Mr. Sandless's requirements. Failure to do so can be grounds for termination of the franchise agreement, highlighting the importance of understanding and adhering to these insurance stipulations. This requirement is fairly common in franchising, as franchisors seek to protect themselves from liability related to the actions of their franchisees.