Can Brain Balance modify or increase the insurance requirements during the term of the franchise agreement?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
the remedies afforded COMPANY 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 legal changes that could increase exposure, and hereby agrees to comply with the new requirements. COMPANY must be named as an additional insured on all of these policies except for workers compensation.
11.02. All such policies shall be primary to and without right of contribution from any insurance maintained by COMPANY, name COMPANY, its parent company and all affiliates, as specified by COMPANY as additional insureds and shall include a provision that they shall not be cancelled or materially amended without twenty (20) days prior written notice to COMPA
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, Brain Balance has the ability to modify or increase the insurance requirements during the term of the franchise agreement. The franchisee is responsible for obtaining insurance at their own cost and expense through Brain Balance's designated broker.
The required insurance includes: Comprehensive Commercial General Liability of at least $1,000,000 per occurrence and $3,000,000 in the aggregate, Professional Liability coverage of $1,000,000 per occurrence and $3,000,000 in the aggregate, Abuse & Molestation coverage of $1,000,000 per occurrence and $3,000,000 in the aggregate, Commercial automobile liability insurance with a combined single limit of $1,000,000, Employment Practices Liability Insurance of at least $1,000,000 per occurrence, and Workers Compensation Insurance of at least $1,000,000 per occurrence. The franchisee must also obtain disability and any other insurance required by law in the state where the franchised business is located.
Brain Balance may modify or increase these insurance requirements due to changes in experience, market conditions, and regulatory or legal changes that could increase exposure. The franchisee agrees to comply with these new requirements. Brain Balance must be named as an additional insured on all policies except for workers compensation.
All insurance policies must be primary and without right of contribution from any insurance maintained by Brain Balance. These policies must name Brain Balance, its parent company, and all affiliates as additional insureds and cannot be canceled or materially amended without twenty (20) days prior written notice to Brain Balance. The franchisee must provide Brain Balance with thirty (30) days' prior written notice if the insurance policies are canceled, non-renewed, or materially amended during the policy term.