What entities must be named as additional insureds on all insurance policies for a Body Brain Center franchise?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
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Insurance
You must obtain the insurance coverage that we require from time to time (whether in the Franchise Agreement or in the Manual). You must purchase these policies from a carrier with an A.M. Best's rating of A or better. The required coverage currently includes: (i) "all risk" property insurance coverage; (ii) comprehensive general liability insurance in the minimum amount of $1,000,000 combined single limit per occurrence and $2,000,000 in the aggregate (with a maximum deductible of $1,000 per claim); (iii) worker's compensation insurance and employer's liability insurance as required by law; and (iv) any other limits and coverage that we periodically require in Manual. The required coverage and policies are subject to change. All insurance policies must: (i) name us (and our members, officers, directors, and employees) as additional insureds; (ii) contain a waiver by the insurance carrier of all subrogation rights against us; and (iii) provide that we receive 10 days' prior written notice of the termination, expiration, cancellation or modification of the policy. You must provide us with a certificate of insurance along with the additional insured endorsement. These are just our minimum insurance requirements and you may wish to purchas
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 16–19)
What This Means (2025 FDD)
According to Body Brain Center's 2025 Franchise Disclosure Document, franchisees are required to secure specific insurance coverage and name certain entities as additional insureds on those policies. Specifically, Body Brain Center (including its members, officers, directors, and employees) must be named as additional insureds on all insurance policies.
This requirement ensures that Body Brain Center is protected from potential liabilities arising from the franchisee's operations. Additionally, all insurance policies must include a waiver by the insurance carrier of all subrogation rights against Body Brain Center. This prevents the insurance company from pursuing claims against Body Brain Center for any losses they may have paid out on behalf of the franchisee. The insurance carrier must also provide Body Brain Center with 10 days' prior written notice of any termination, expiration, cancellation, or modification of the policy.
To demonstrate compliance, franchisees must provide Body Brain Center with a certificate of insurance along with the additional insured endorsement. It is important to note that these are just the minimum insurance requirements set by Body Brain Center, and franchisees may want to consider purchasing additional coverage to adequately protect their business. Franchisees must purchase these policies from a carrier with an A.M. Best's rating of A or better.