Who must be named as additional insureds on the insurance policies for a Pump It Up franchise?

According to Pump It Up's 2025 Franchise Disclosure Document, all insurance policies must name the franchisor, its affiliates, and their respective officers and owners as additional named insureds. This requirement ensures that Pump It Up and its related parties are protected under the franchisee's insurance policies against potential liabilities arising from the operation of the franchise.

For a prospective Pump It Up franchisee, this means they will need to ensure their insurance policies include these additional insureds. This may increase the cost of the insurance premiums, as the insurance company is extending coverage to additional parties. The franchisee must also provide the franchisor with 30 days' prior written notice of any material modification, cancellation, or expiration of the insurance policies.

Furthermore, each insurance policy must be specifically endorsed to provide that the coverage is primary and that any insurance carried by any additional insured is excess and non-contributory. This clause ensures that the franchisee's insurance policy is the first line of defense in case of a claim, and the franchisor's insurance only comes into play after the franchisee's coverage is exhausted. This arrangement protects the franchisor's insurance coverage and potentially reduces their risk exposure.