What is the minimum aggregate amount of Professional Liability coverage that a Brain Balance franchisee must obtain 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 cov
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 Professional Liability coverage. This coverage must include education services and provide a minimum of $1,000,000 per occurrence and $3,000,000 in the aggregate. The policy must also include coverage for contingent bodily injury and property damage in the amount of $1,000,000.
This insurance requirement ensures that Brain Balance franchisees have adequate financial protection against potential claims arising from the services they provide. The specific inclusion of education services in the Professional Liability coverage highlights the nature of the Brain Balance program and the potential risks associated with providing educational support to children with developmental delays. The additional coverage for contingent bodily injury and property damage further broadens the scope of protection for the franchisee.
Franchisees must secure this insurance through Brain Balance's designated broker, ensuring compliance with the franchisor's standards and potentially benefiting from negotiated rates. Maintaining the required insurance coverage is a critical aspect of operating a Brain Balance franchise, as it protects both the franchisee and the franchisor from financial losses due to unforeseen events or claims. Failure to maintain this coverage could result in a breach of the franchise agreement and potential termination of the franchise.
The high coverage amounts reflect the potential risks involved in working with children and providing educational services. Prospective franchisees should factor these insurance costs into their overall financial planning and ensure they understand the terms and conditions of the required policies.