Is the Franchisor's Affiliate obligated to verify the Aira Fitness franchisee's insurance coverage?

According to Aira Fitness's 2025 Franchise Disclosure Document, while the franchisee is required to provide evidence of insurance coverage to the Franchisor's Affiliate, the affiliate itself is not obligated to verify the insurance policy or advise the franchisee on its compliance. The franchisee must obtain and maintain property damage and liability insurance, as well as insurance against loss or damage to the equipment, naming both the franchisee and the Franchisor's Affiliate as insured parties.

The franchisee is responsible for ensuring that the insurance coverage meets the requirements set forth by the Franchisor's Affiliate, including the amounts, form, and insurers. The insurance policy must include cross-liability endorsements and a clause requiring the insurer to provide at least 30 days' prior written notice of any material alterations or cancellation of the policy to the Franchisor's Affiliate. The franchisee must furnish a certificate of insurance or other satisfactory evidence to the Franchisor's Affiliate that the required insurance coverage is in effect.

However, the FDD explicitly states that the Franchisor's Affiliate has no duty to ascertain the existence of or examine the insurance policy, nor are they obligated to advise the franchisee if the coverage does not comply with the requirements. Despite this lack of duty, the Franchisor's Affiliate retains the option to obtain insurance on behalf of the franchisee if the franchisee fails to do so, with the franchisee responsible for promptly reimbursing all costs, including reasonable administrative costs.