Who is responsible for the cost of insurance coverage for the Body20 Studio?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
within five days after the commencement of any action, suit or proceeding, or of the issuance of any inquiry, subpoena, order, writ, injunction, award, or decree of any court, agency, or other governmental instrumentality in connection with the operation or financial condition of the Studio, including any criminal action or proceeding brought by you against any employee, customer, or other person, but excluding civil proceedings against customers to collect monies owed.
- 6.14 Insurance. During the Term you must maintain in force at your sole expense the insurance coverage for the Studio in the amounts, covering the risks, and containing only the exceptions and exclusions that we periodically specify in the Manuals for all similarly situated Studios. All of your insurance carriers must be rated A or higher by A.M. Best and Company, Inc. (or such similar criteria as we periodically specify). These insurance policies must be in effect on or before the deadlines we specify.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the franchisee is solely responsible for the cost of insurance coverage for the Body20 studio. The franchisee must maintain insurance coverage in the amounts, covering the risks, and containing only the exceptions and exclusions that Body20 periodically specifies in the manuals for all similarly situated studios.
The insurance carriers must be rated A or higher by A.M. Best and Company, Inc. (or such similar criteria as Body20 periodically specifies). These insurance policies must be in effect on or before the deadlines Body20 specifies. All coverage must be on an "occurrence" basis, except for the employment practices liability insurance coverage, which is on a "claims made" basis.
If the franchisee fails to obtain or maintain the specified insurance, Body20 has the option to obtain such insurance for the franchisee and the studio, and may charge the franchisee up to 120% of their costs and expenses related to obtaining and maintaining the insurance. This highlights the importance of adhering to Body20's insurance requirements to avoid potential additional costs and ensures the studio operates with adequate protection as defined by the franchisor.