Is Punch King Fitness required to be named as an additional insured on the franchisee's insurance policies?

According to Punch King Fitness's 2024 Franchise Disclosure Document, franchisees are required to secure insurance policies that name Punch King Fitness as an additional insured. The franchisee's insurance policies must include Punch King Fitness, its affiliates, subsidiaries, owners, officers, directors, partners, members, employees, servants, and agents. This coverage protects against any loss, liability, products liability, personal injury, death, or property damage that may occur due to the franchisee's operation of the Punch King Fitness business.

The insurance policies obtained by the franchisee must contain a separate endorsement specifically naming Punch King Fitness and its affiliates as additional named insureds. Furthermore, franchisees are obligated to provide an insurance certificate to Punch King Fitness's office on an annual basis, demonstrating compliance with these insurance requirements.

This requirement ensures that Punch King Fitness is protected from potential liabilities arising from the franchisee's business operations. It is a common practice in franchising to require franchisees to maintain adequate insurance coverage and to include the franchisor as an additional insured to mitigate risks and protect the brand's reputation and financial interests. Franchisees should carefully review the insurance requirements outlined in the Franchise Agreement and consult with an insurance professional to ensure they obtain the necessary coverage.