What is the minimum medical expense coverage required per accident for an Aira Fitness franchise?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
e event you default in making any such payment, we are authorized, but not required, to pay the same on your behalf and you agree promptly to reimburse us on demand for any such payment.
- B. Insurance. You must maintain in full force and effect throughout the term of this Agreement that insurance which you determine is necessary or appropriate for liabilities caused by or occurring in connection with the development or operation of the Aira Fitness Business. Such insurance must include, at a minimum: (i) special/causes of loss coverage forms, including mechanical/equipment breakdown (previously called "All Risk coverage") on the Aira Fitness Business and all fixtures, equipment and other property used in the operation of the Aira Fitness Business, for full replacement value of the equipment and improvements; (ii) business interruption insurance covering a minimum 12 months loss of income, written on an actual loss sustained basis, including coverage for our monthly fees with us named as a loss payee with respect to those fees; (iii) comprehensive general liability insurance with minimum limits of at least $1,000,000 per occurrence and $2,000,000 aggregate (including product liability and personal and advertising injury) and "Per Location" aggregate limits when multiple Aira Fitness Business locations are insured under one comprehensive general liability policy; (iv) automobile liability insurance, including owned, hired and non-owned vehicle coverage with a minimum combined single limit of at least $1,000,000 per claim; (v) workers' compensation and employer's liability insurance covering all of your employees where required by state statute; (vi) professional liability insurance, including abuse and molestation, with a minimum limit of at least $1,000,000 per occurrence; (vii) Commercial Umbrella Liability of at least $10,000,000 per occurrence and $10,000,000 aggregate with "Per Location" aggregate limits when multiple Aira Fitness Business locations are insured under one comprehensive umbrella liability policy (viii) cyber liability with minimum limits of at least $25,000 per occurrence; (ix) medical expense coverage of at least $1,000 per accident; (x) crime (employee dishonesty, theft and robbery) with minimum limits of at least $10,000 per occurrence; (xi) employment practices liability with minimum limits of at least $100,000 per occurrence and inclusive of both first and third party coverage; (xii) AIRA Fitness Franchising LLC and any entity with an insurable interest that we designate (the "Additional Insureds") must be an additional insured on all liability policies required by this subparagraph to the extent each has an insurable interest; (xiii) each policy of insurance maintained pursuant to this Agreement mus
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, franchisees must maintain medical expense coverage of at least $1,000 per accident. This insurance requirement is part of a broader set of insurance policies Aira Fitness mandates to protect the business and related parties.
This requirement means that, at a minimum, an Aira Fitness franchisee's insurance policy must cover up to $1,000 in medical expenses for each accident that occurs at their facility. This coverage is intended to help with immediate medical costs resulting from accidents, potentially preventing further legal complications. It is important to note that this is a minimum, and franchisees can (and perhaps should) obtain higher coverage limits to adequately protect their business from potential liabilities.
Franchisees must ensure that their insurance policies are written by companies satisfactory to Aira Fitness, generally those with an AM Best rating of A- or better. Furthermore, Aira Fitness can modify the required minimum limits from time to time to reflect changes in industry standards, liability standards, and experiences within the Aira Fitness system. Franchisees must provide Aira Fitness with proof of insurance coverage and any changes to their policies.
Ultimately, while Aira Fitness sets a minimum requirement, franchisees should carefully assess their specific risks and consider obtaining higher coverage limits to adequately protect their business. The FDD explicitly states that these minimum insurance requirements do not constitute advice or a representation that such coverages are adequate to protect the franchisee from losses.