Under what condition will Body Brain Center require a franchisee to reimburse insurance costs?
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, a franchisee may be required to reimburse Body Brain Center for insurance costs under specific circumstances. If a franchisee fails to obtain and maintain the insurance coverage that Body Brain Center requires, Body Brain Center has the option to secure the necessary insurance on behalf of the franchisee.
In such instances where Body Brain Center elects to obtain insurance coverage for the franchisee, the franchisee is obligated to reimburse Body Brain Center for the actual cost of the insurance premiums. This reimbursement also includes any additional costs and expenses incurred by Body Brain Center in securing the insurance.
This condition underscores the importance of franchisees adhering to Body Brain Center's insurance requirements. Failure to maintain adequate insurance not only exposes the franchisee to potential liabilities but also places the franchisee in a position where they must reimburse Body Brain Center for insurance costs, potentially increasing their financial burden.