What is the minimum aggregate amount of Abuse & Molestation coverage required for a Brain Balance franchise?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
MPANY pursuant to Section 17 hereof, COMPANY may apply any and all penalties associated with such violation, as set forth in the Operations Manual.
11. INSURANCE
11.01. Unless otherwise required by law, FRANCHISEE shall obtain, at its own cost and expense through COMPANY's designated broker, (i) Comprehensive Commercial General Liability, including all extensions, in an amount not less than one million dollars ($1,000,000) per occurrence, written on an occurrence basis, and $3,000,000 in the aggregate, including Business Personal Property and Improvements and Betterments at the suggested minimum amounts; (ii) Professional Liability coverage, including, but not limited to, education services ($1,000,000 per occurrence and $3,000,000 in the aggregate, which must include coverage for contingent bodily injury and property damage in the amount of $1,000,000); (iii) Abuse & Molestation coverage ($1,000,000 per occurrence; $3,000,000 in the aggregate); (iv) Commercial automobile liability insurance covering vehicles that are owned, non-owned, or hired by the Franchised Business with a combined single limit of $1,000,000, (v) Employment Practices Liability Insurance in an amount not less than one million dollars ($1,000,000) per occurrence; and (vi) Workers Compensation Insurance in an amount not less one million dollars ($1,000,000) per occurrence. FRANCHISEE also agrees to obtain disability, and any other insurance required by law in the state in which the Franchised Business office is located. FRANCHISEE acknowledges that COMPANY may modify or increase the insurance requirements during the term of this agreement due to changes in experience, market conditions, and regulatory or l
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, franchisees are required to maintain Abuse & Molestation coverage with a minimum of $1,000,000 per occurrence and $3,000,000 in the aggregate. This insurance coverage is intended to protect against potential liabilities arising from incidents of abuse or molestation related to the operation of the Brain Balance center.
In addition to Abuse & Molestation coverage, Brain Balance franchisees must also obtain other insurance policies, including Comprehensive Commercial General Liability, Professional Liability, Commercial automobile liability insurance, Employment Practices Liability Insurance, and Workers Compensation Insurance. The franchisor, Brain Balance, must be named as an additional insured on all policies except for workers compensation.
Brain Balance retains the right to modify or increase the insurance requirements during the term of the franchise agreement due to changes in experience, market conditions, and regulatory or legal changes. Franchisees are obligated to comply with any new insurance requirements implemented by Brain Balance. It is important for prospective franchisees to factor in the costs of these insurance policies when evaluating the overall investment required to operate a Brain Balance franchise.