What are the Workers Compensation/Employers Liability insurance requirements for a Mr. Sandless franchise?

According to Mr. Sandless's 2025 Franchise Disclosure Document, franchisees are required to maintain Workers Compensation/Employers Liability insurance with state statutory limits. This means the insurance coverage must meet the minimum requirements set by the state in which the franchisee operates.

In addition to Workers Compensation/Employers Liability insurance, Mr. Sandless requires franchisees to obtain and maintain 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 Employer Practices Liability Insurance ($1,000,000). Mr. Sandless must be named as an additional insured on these policies for ongoing and completed operations, and the policies should waive all rights of subrogation against Mr. Sandless.

The specific details of Mr. Sandless's insurance requirements are included in the Operations Manual and may change during the term of the Franchise Agreement. Franchisees must comply with any changes Mr. Sandless mandates for insurance coverage. Failure to comply with the insurance requirements is grounds for termination of the franchise agreement. Prospective franchisees should carefully review the Operations Manual and consult with an insurance professional to ensure they can meet Mr. Sandless's insurance requirements and understand the associated costs.

It is common practice in the franchise industry for franchisors to mandate certain insurance coverages to protect their brand and mitigate potential liabilities. The levels of coverage required by Mr. Sandless appear to be within a typical range for service-based franchises, but franchisees should still obtain quotes from multiple insurance providers to secure competitive rates and comprehensive protection.