Besides the premium, what other insurance-related costs can Body Brain Center charge back to the franchisee?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| Insurance 1 | Actual cost of premiums, plus our costs and expenses | As incurred | If you fail to obtain and maintain the insurance we require, and we elect to do so on your behalf, you must reimburse us. |
Source: Item 6 — OTHER FEES (FDD pages 11–14)
What This Means (2025 FDD)
According to Body Brain Center's 2025 Franchise Disclosure Document, in addition to the actual cost of insurance premiums, Body Brain Center may charge franchisees for its "costs and expenses" related to obtaining insurance on their behalf. This situation arises if a franchisee fails to secure and maintain the insurance coverage that Body Brain Center requires. In such cases, Body Brain Center has the option to obtain the necessary insurance coverage for the franchisee.
This means that a Body Brain Center franchisee could face additional costs beyond the standard premium. These added expenses could include administrative fees, broker fees, or any other costs Body Brain Center incurs while securing the insurance policy. The FDD does not specify a limit on these "costs and expenses," so they could potentially vary significantly depending on the complexity of obtaining the insurance and the specific providers involved.
It is important for prospective Body Brain Center franchisees to understand the insurance requirements outlined in the Franchise Agreement and to ensure they can meet these requirements independently. Failure to do so could result in Body Brain Center securing the insurance on their behalf and passing along potentially unpredictable additional costs and expenses. Franchisees should clarify with Body Brain Center what specific types of "costs and expenses" might be charged in addition to the premium to better prepare for this possibility.