How many insurance vendors has Brain Balance approved as of the date of the FDD?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
You are required to obtain insurance through one of our approved insurance vendors and you are required to give us at least 30 days prior notice before you terminate, non-renew or materially alter any of the insurance coverages we require. As of the date of this FDD, we have approved two insurance vendors and we will not approve other insurance vendors this year. If you fail to procure or maintain the insurance coverage required by the Franchise Agreement, we have the right to procure such insurance for you and you shall be responsible for reimbursing us for all costs, including premiums and any applicable administrative costs. If you fail to procure or maintain the required insurance coverage or fail to reimburse us, then we may consider such failure a default of the Franchise Agreement, which will expose you to penalties associated with such default, as discussed in the Operations Manual.
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 required to obtain insurance through one of Brain Balance's approved insurance vendors. As of the date of the FDD, Brain Balance has approved two insurance vendors and does not plan to approve any others during the year.
This requirement means that franchisees have limited choice in selecting their insurance providers and must use one of the two vendors approved by Brain Balance. While this may simplify the process of obtaining insurance, it also means that franchisees may not be able to shop around for the best rates or coverage options.
If a franchisee fails to procure or maintain the required insurance coverage, Brain Balance has the right to obtain the insurance on the franchisee's behalf, and the franchisee will be responsible for reimbursing Brain Balance for all costs, including premiums and administrative fees. Failure to comply with insurance requirements or reimburse Brain Balance can be considered a default of the Franchise Agreement, potentially leading to penalties as outlined in the Operations Manual. Franchisees are also required to give Brain Balance at least 30 days prior notice before terminating, non-renewing, or materially altering any of the required insurance coverages.