Key Takeaways The "Hooks":  Additional Insured, Waiver of Subrogation, and Primary and Non-Contributory are the mandatory modifications that bind a franchisee's insurer to your brand. The Joint Employer Trap:  Asking for Additional Insured status on Workers' Comp is a legal landmine. It can be used to argue you are the "boss," making you liable for the franchisee's payroll and labor issues. Contractual Priority:  Insurance "blanket" forms are dormant unless your Franchise Agr

There is an evolution that happens in every franchise brand. In the early days, many franchisors collect nothing at all. They are focused on growth, sales, and opening units. Insurance is an afterthought. Then, as the brand matures, leadership realizes the risk and moves to the next stage: collecting Certificates of Insurance (COIs). I want to be clear: Moving from collecting nothing to collecting COIs is a massive win. It is a critical step in modifying the behavior of your

Most franchisors operate under a dangerous misconception regarding insurance. They believe that insurance requirements are simply a checklist item—a few paragraphs to be inserted into the Franchise Disclosure Document, filed away, and forgotten until a renewal comes up a year later. This assumption is one of the most expensive operational mistakes a franchise system can make. Insurance requirements are not just administrative paperwork. They are the structural steel that hold

Most franchisors answer that question with a template. They copy a section from another FDD, drop in a few limits, mention “general liability,” “property,” maybe “auto,” and call it a day. It looks official. It sounds legal. It feels sufficient. Until something goes wrong. A roof leak that ruins a build-out.  A vehicle accident that kills someone.  A fryer fire that shuts down a restaurant for 14 months.  A cyber scam that drains $50,000.  A harassment claim that names the fr