Home
>
Strategic Planning
>
Insurance Requirements in Franchised Companies

Insurance Requirements in Franchised Companies

Franchised companies often require what some believe to be excessive insurance requirements. This is because so often if a franchise is sued for any reason that the Lawyers go after the big money of the franchisors and name them in the lawsuit. It is amazing that a lawyer can write garbage in a lawsuit and file it in court and if you do not hire another lawyer to fight them, you could lose your entire life's work and company. But our legal system as most entrepreneurs agree is a complete joke and more closely represents the extortion tactics of the mob than any legitimate sense of fairness or truth. This is why franchisors must require huge limits of liability insurance and additional insured certificates as part of the franchise agreement.

It behooves a franchisor to set aside a place in the Official and Confidential Operations Manual to explain to franchisees why these requirements are in place. Franchisees are put at a disadvantage to other businesses in the market place due to the high costs of liability insurance required. But due to the lawsuits and lawyers it is imperative that these insurance policies are in place. When writing a chapter on required insurance for franchisees of a franchise system you will need to cover many sub topics. Below is an outline of our Insurance Requirements Chapter for our Franchise Company; CarWashGuys.com , feel free to print this article and outline and then modify it somewhat to fit your business model. Once this is done put a few paragraphs to each number and lettered item and then review it. Type it up double-spaced and have an attorney look it over and share it with your insurance agent and have their underwriters look it over for accuracy. Then once completed add it to your Confidential Operations Manual to prevent discontent from your franchisees. Think on this.

INSURANCE

I. REASONS

A. Liability Exposure

B. Marketing

C. Franchisor Help

D. Peace Of Mind

II. WHO REQUIRES IT

A. Industrial Customers

B. Property Management

C. Large Corporations

D. Franchisor

E. Government Accounts

III. LIMITATIONS

A. What It Doesn't Cover

B. Reasons

IV. LIABILITY COVERAGE AMOUNTS

A. Liability Completed Operations

B. Vehicle

C. Worker's Compensation

D. Theft, Etc.

V. OTHER

"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.worldthinktank.net/wttbbs

tidy up service Northbrook ..

In The News:

ETA sharing on Apple Maps and Google Maps keeps contacts updated automatically while you drive safely. Learn step-by-step instructions for iPhone and Android.

Data removal from brokers protects against AI-powered scams and deepfake threats in 2026. Learn how data brokers sell your personal information to scammers.

Learn how to act against cybercriminals in 2026 with essential security steps like two-factor authentication, software updates and credit freezing.

Choose between OpenAI releasing Sora text-to-video model, the AI race heating up, or Waymo driverless cars launching in cities across the country

Learn how to set up Google Maps and Apple Maps on your phone to automatically remember where you parked. Step-by-step instructions for enabling location services and parking detection.

Phishing scammers use rnicrosoft.com domain to impersonate Microsoft by replacing "m" with "rn" in typosquatting attacks that steal login credentials.

OpenAI announces new teen safety rules for ChatGPT users under 18, blocking romantic roleplay and requiring extra caution on body image topics.

A 2025 data breach at fintech company 700Credit exposes personal information of more than 5.8 million people through compromised third-party integration partner.

Retailers lose $76.5 billion annually to return fraud as nearly 10% of U.S. retail returns involve fraudulent activity, with $850 billion in returns expected in 2025.

ShinyHunters claims responsibility for stealing 94GB of Pornhub user data affecting over 200 million records and demands Bitcoin ransom.

ChatGPT 2025 now connects to Apple Music, Canva, Expedia, TripAdvisor and OpenTable through built-in apps that help users create playlists, design graphics and more.

Apple releases emergency patches for two zero-day vulnerabilities actively exploited in attacks. iPhone and iPad users urged to update immediately.

DoorDash launches Zesty, an AI-powered social app that recommends restaurants through conversational search, now testing in San Francisco and New York.

Cybersecurity firm Infoblox reveals that over 90 percent of parked domains now redirect visitors to scams and malware, making simple typos extremely dangerous.

The Fox News AI Newsletter covers the latest artificial intelligence technology advancements, including the challenges and opportunities AI presents now and for the future.

GPT-5.2 is now live for all ChatGPT users with improved coding, writing and image interpretation, with Kurt Knutsson offering his review.

New iPhone replacement scam uses pressure tactics and fake carrier calls to steal devices from buyers. Criminals claim shipping errors and demand urgent returns.

Amazon Ring's new facial recognition feature sparks privacy controversy as Electronic Frontier Foundation critics argue the AI upgrade expands surveillance risks.

New Android banking trojan Sturnus steals credentials, reads encrypted messages and controls devices.

Denmark's 3D-printed student village proves automation builds 36 apartments faster than traditional methods. Skovsporet project shows housing future.

Discover Android's new Sound Notifications feature that alerts you to smoke alarms, doorbells, and baby cries even when wearing headphones.

New SantaStealer malware reportedly threatens holiday shoppers with password theft. This Christmas-themed info-stealer targets browsers and crypto wallets.

The Christmas season brings a surge in Netflix phishing scams targeting shoppers with fake emails. Stacey P received convincing scam but verified account first.

San Francisco Giants invite Jamie Grohsong to throw ceremonial first pitch at Oracle Park after he learned to play baseball with a bionic hand following an injury.

FBI warns cybercriminals are stealing family photos from social media to create fake proof of life images in virtual kidnapping scams targeting victims.

Insurance Requirements in Franchised Companies

Strategic Planning