Who must the insurance policies for a Punch King Fitness franchise insure?

According to Punch King Fitness's 2024 Franchise Disclosure Document, the insurance policies must cover several parties. Specifically, the policies must insure Punch King Fitness, the franchisee (you), and their respective affiliates, subsidiaries, owners, officers, directors, partners, members, employees, servants, and agents. This broad coverage protects these individuals and entities against various potential liabilities. These liabilities include loss, general liability, products liability, personal injury, death, or property damage that may occur due to the franchisee's operation of the Punch King Fitness business.

In practical terms, this means that if a customer is injured at your Punch King Fitness location, or if there's property damage related to your business operations, the insurance policy must provide coverage not only for your business but also for Punch King Fitness itself and all the individuals and entities associated with both the franchise and the franchisor. This requirement is standard in franchising, as it protects the franchisor from vicarious liability arising from the franchisee's actions.

Furthermore, the FDD states that the insurance policies must contain a separate endorsement naming Punch King Fitness and its affiliates as additional named insureds. This ensures that the franchisor has direct protection under the franchisee's insurance policy. Franchisees are also required to submit an insurance certificate to Punch King Fitness's office annually to demonstrate compliance with these insurance requirements. This ongoing verification helps Punch King Fitness ensure that all franchisees maintain the necessary coverage, reducing the franchisor's overall risk exposure.