Under what circumstances can Best Brains increase the minimum amount of insurance coverage required for franchisees?

According to Best Brains' 2025 Franchise Disclosure Document, Best Brains can increase the minimum amount of insurance coverage required for franchisees under certain circumstances. These circumstances include factors such as inflation, the identification of new risks, changes in law or standards of liability, higher damage awards, or other relevant changes in circumstances.

Best Brains requires franchisees to purchase and maintain various types of insurance, including workers' compensation, comprehensive public liability and property damage, business interruption, and general and umbrella coverages. The franchisee must maintain coverage under one or more insurance policies that meet the terms, conditions, and minimum liability protection amount specified by Best Brains. All insurance policies must be issued by insurance carriers approved by Best Brains.

This provision allows Best Brains to adapt to changing economic and legal conditions, ensuring that franchisees maintain adequate insurance coverage to protect both their business and the Best Brains brand. For a prospective franchisee, this means that insurance costs could increase over time due to factors outside of their direct control. It is important to factor in potential insurance increases when projecting operating expenses.