What is the minimum amount of Comprehensive Commercial General Liability insurance that a Brain Balance franchisee must obtain per occurrence?
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 must secure Comprehensive Commercial General Liability insurance. This insurance must include all extensions and be written on an occurrence basis. The minimum coverage required is $1,000,000 per occurrence and $3,000,000 in the aggregate. This coverage should also include Business Personal Property and Improvements and Betterments at suggested minimum amounts.
Brain Balance requires franchisees to obtain this insurance through the company's designated broker, ensuring compliance with their specific coverage requirements. This stipulation allows Brain Balance to maintain a degree of control over the insurance policies, ensuring that all franchisees have adequate coverage and that the company is named as an additional insured on these policies, except for workers' compensation.
It is important to note that Brain Balance retains the right to modify or increase these insurance requirements during the term of the franchise agreement. These changes could be due to shifts in experience, market conditions, or regulatory and legal changes that increase exposure. Franchisees are obligated to comply with any new insurance requirements implemented by Brain Balance. This flexibility ensures that the insurance coverage remains adequate and responsive to changing circumstances, protecting both the franchisee and the Brain Balance brand.