If Best Brains obtains insurance on behalf of a franchisee, is the franchisee responsible for reimbursing Best Brains for the premiums and expenses?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
If you do not maintain insurance as required, we may, obtain such insurance and keep the same in full force and effect on your behalf. If we do, you shall reimburse the Company for all premiums and other expenses incurred by us in connection with obtaining such insurance.
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, if a franchisee fails to maintain the required insurance coverage, Best Brains has the option to obtain insurance on the franchisee's behalf. In such instances, the franchisee is responsible for reimbursing Best Brains for all premiums and expenses incurred in obtaining the insurance.
This requirement ensures that all Best Brains centers maintain adequate insurance coverage, protecting both the franchisee and the franchisor from potential liabilities. It also places the onus on the franchisee to proactively manage their insurance obligations.
For a prospective Best Brains franchisee, this means understanding and adhering to the insurance requirements outlined in the franchise agreement and operations manual is crucial. Failure to do so could result in Best Brains securing insurance on their behalf and the franchisee incurring additional costs for premiums and related expenses. Franchisees should clarify the specific types and amounts of required insurance coverage with Best Brains during their due diligence process.