What AM Best rating is generally required for insurance carriers providing insurance not included in the insurance program for Aira Fitness franchisees?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
All required insurance not included in the insurance program must be obtained from a responsible carrier or carriers acceptable to us (generally an AM Best rating of A- or better). All of the policies must name us and anyone else we designate with an insurable interest as additional insured and must include a waiver of subrogation in favor of each additional named insured.
Source: Item 8 — **RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 31–33)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, if franchisees are required to obtain insurance coverage that is not included in the Aira Fitness insurance program, they must secure it from a carrier with an AM Best rating of A- or better.
This requirement ensures that franchisees obtain coverage from financially stable and reputable insurance providers. AM Best ratings are widely recognized indicators of an insurer's financial strength and ability to meet its obligations to policyholders. By mandating a minimum rating of A-, Aira Fitness aims to protect both the franchisee and the brand from potential losses due to underinsured or non-covered events.
Furthermore, all insurance policies obtained outside of the Aira Fitness insurance program must name Aira Fitness and any other designated parties as additional insureds. These policies must also include a waiver of subrogation in favor of each additional named insured. This protects Aira Fitness from potential liabilities and claims arising from the franchisee's operations. Franchisees should carefully review their insurance options and ensure compliance with these requirements to avoid any potential breaches of the franchise agreement.