When must Body20 franchisees maintain insurance coverage?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
These insurance policies must be in effect on or before the deadlines we specify.
All coverage must be on an "occurrence" basis,
except for the employment practices liability insurance coverage, which is on a "claims made" basis. All policies shall apply on a primary and non-contributory basis to any other insurance or self-insurance that we or our Affiliates maintain. All general liability and workers' compensation coverage must provide for waiver of subrogation in favor of us and our Affiliates. We may, upon at least 60 days' notice to you, periodically increase the amounts of coverage required and/or require different or additional insurance coverage at any time to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards or other relevant changes in circumstances. All insurance policies must name us and any Affiliates we designate as an additional insured and provide for 30 days' prior written notice to us of a policy's material modification or cancellation. You agree periodically to send us a valid certificate of insurance or duplicate insurance policy evidencing that you have maintained the required coverage and paid the applicable premiums. If you fail to obtain or maintain (or to prove that you have obtained or maintained) the insurance we specify, in addition to our other remedies, we may (but need not) obtain such insurance for you and the Studio on your behalf, in which event you shall cooperate with us, and we may charge you up to 120% of our and our affiliates' costs and epenses related to obtaining and maintaining the insurance.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, franchisees must have their insurance policies in effect on or before the deadlines specified by Body20. The insurance coverage must be maintained throughout the term of the franchise agreement.
Body20 requires that all coverage be on an "occurrence" basis, except for employment practices liability insurance, which can be on a "claims made" basis. The policies should apply on a primary and non-contributory basis relative to any other insurance or self-insurance maintained by Body20 or its affiliates. Additionally, general liability and workers' compensation coverage must include a waiver of subrogation in favor of Body20 and its affiliates.
Body20 retains the right to increase the required coverage amounts or mandate different or additional insurance at any time, providing at least 60 days' notice to the franchisee. These changes can be due to inflation, new risk identification, changes in law, or other relevant circumstances. Franchisees must name Body20 and its designated affiliates as additional insured parties and provide 30 days' prior written notice to Body20 of any material modification or cancellation of a policy.
Franchisees are responsible for periodically sending Body20 valid certificates of insurance or duplicate policies as proof of maintained coverage and premium payments. Failure to maintain the specified insurance allows Body20 to obtain insurance on behalf of the franchisee and the studio, charging the franchisee up to 120% of the costs incurred.