What is the minimum amount of Employment Practices Liability Insurance per occurrence that a Brain Balance franchisee must obtain?
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 Employment Practices Liability Insurance. The minimum coverage required is $1,000,000 per occurrence. This insurance is designed to protect the Brain Balance franchisee from claims related to employment practices such as discrimination, wrongful termination, or harassment.
In addition to the Employment Practices Liability Insurance, Brain Balance franchisees must also secure other types of insurance coverage. These include Comprehensive Commercial General Liability ($1,000,000 per occurrence), Professional Liability coverage ($1,000,000 per occurrence), Abuse & Molestation coverage ($1,000,000 per occurrence), Commercial automobile liability insurance ($1,000,000 combined single limit), and Workers Compensation Insurance ($1,000,000 per occurrence).
Brain Balance also stipulates that the franchisor, its parent company, and affiliates must be named as additional insureds on all policies, except for workers' compensation. Furthermore, these insurance policies must not be canceled or materially amended without providing Brain Balance with thirty days' prior written notice. It is important to note that Brain Balance may modify or increase the insurance requirements during the term of the agreement due to changes in experience, market conditions, and regulatory or legal changes.