Does Best Brains require franchisees to acquire sexual misconduct liability insurance?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
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Insurance.
You must purchase insurance in the types and amounts of coverage that we specify and we reserve the right to specify designated broker(s) or insurance carrier(s). At present, we require franchisees to purchase the following minimum insurance requirements:
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- Commercial general liability insurance policy, including products liability, combined single limit for bodily injury and property damage liability in the minimum amount of $1,000,000 per occurrence and $2,000,000 aggregate.
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- Workers' compensation insurance as required by local law.
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- Best Brains, Inc. must be listed as an additional insured and provide for written communication at least 30 days in advance of a cancellation of the policy.
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- It is recommended but not required that franchisees a
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–21)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, franchisees are not required to acquire sexual misconduct liability insurance, but it is recommended. Best Brains does mandate that franchisees maintain certain minimum insurance coverages. These include a commercial general liability insurance policy with a minimum of $1,000,000 per occurrence and $2,000,000 aggregate for bodily injury and property damage. Franchisees must also carry workers' compensation insurance as required by local law.
Best Brains requires that it be listed as an additional insured on the commercial general liability policy. The insurance provider must also provide Best Brains with written communication at least 30 days before any cancellation of the policy.
While sexual misconduct liability insurance is not mandatory, the recommendation suggests that Best Brains recognizes the potential risk and encourages franchisees to protect themselves and their employees. Prospective franchisees should carefully consider this recommendation and evaluate the potential costs and benefits of obtaining this additional coverage.