What is the minimum combined single limit required for commercial automobile liability insurance covering vehicles used by a Brain Balance franchised business?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
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); Abuse & Molestation coverage ($1,000,000 per occurrence; $3,000,000 in the aggregate); Cyberliability coverage of at least $500,000, although we recommend that you consult with your insurance broker and evaluate whether you should have higher coverage; Employment Practices Liability Insurance ("EPLI") in the amount of $1,000,000 per occurrence, and 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. You must also obtain workers compensation, disability, and any other insurances, in such form and in such amounts, as may be required by law in the state in which your Franchised Business operates. You may be required to obtain new certificates naming us or third parties as additional insureds for off-site events including Conventions or Trade Shows, or if your center has been approved to deli
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 maintain commercial automobile liability insurance covering vehicles that are owned, non-owned, or hired by the franchised business. This insurance must have a combined single limit of $1,000,000.
This requirement ensures that Brain Balance franchisees have adequate financial protection in the event of an accident involving a vehicle used for business purposes. The $1,000,000 combined single limit covers both bodily injury and property damage, providing a substantial safety net for potential liabilities. Franchisees must secure this coverage to comply with the Franchise Agreement.
It is important to note that Brain Balance requires franchisees to obtain insurance through one of their approved insurance vendors. Failure to maintain the required insurance coverage can result in Brain Balance procuring the insurance on behalf of the franchisee, with the franchisee responsible for reimbursing all costs, including premiums and administrative fees. Furthermore, failure to procure or maintain the required insurance coverage, or failure to reimburse Brain Balance, may be considered a default of the Franchise Agreement, potentially leading to penalties.
Prospective franchisees should factor this insurance requirement into their initial investment and ongoing operating expenses. They should also consult with Brain Balance's approved insurance vendors to understand the specific coverage options and costs associated with meeting the required $1,000,000 combined single limit for commercial automobile liability insurance.