Is a Brain Balance franchisee required to obtain workers compensation and disability insurance through the franchisor's preferred vendor?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
With the exception of workers compensation and disability insurance or where otherwise required by law, you must obtain all of your insurance policies through the insurance broker that we have selected as our preferred vendors. Our current, specific insurance requirements are listed at the end of this Item 8. If, based on local law or regulation, it is necessary for you to obtain your insurance from an insurance company or broker other than the brokers we designate, the company or broker you use must meet our required limits and the carrier must have a rating of at least A in Best's Insurance Reports, as well as be reviewed through Standard and Poor's Website and Moody's. If we approve your use of an insurance company or broker other than a broker we designate for reasons other than local law or regulation, you will be required to pay one of our recommended insurance brokers an audit fee to review the policies for compliance with our requirements prior to your binding coverage.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 30–34)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, franchisees are generally required to obtain their insurance policies through the insurance broker that Brain Balance has selected as their preferred vendors. However, there is an exception for workers' compensation and disability insurance, or where otherwise required by law.
In cases where local law or regulation necessitates obtaining insurance from a company or broker other than Brain Balance's designated brokers, the chosen company or broker must meet specific requirements. The insurance carrier must have a rating of at least A in Best's Insurance Reports and be reviewed through Standard and Poor's Website and Moody's.
If a Brain Balance franchisee is approved to use an insurance company or broker other than the ones designated by Brain Balance for reasons other than local law or regulation, the franchisee will be required to pay one of Brain Balance's recommended insurance brokers an audit fee. This fee covers the review of the policies to ensure compliance with Brain Balance's requirements before coverage is bound.