Is Brain Balance required to be named as an additional insured on workers compensation coverage?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
We and our parent and affiliate companies must be named as an additional insured on all lines of coverage; (except for workers compensation). Upon request BBF must be provided with Certificates of Insurance in place at your Center. You are required to obtain insurance through one of our approved insurance vendors and you are required to give us at least 30 days prior notice before you terminate, non-renew or materially alter any of the insurance coverages we require. As of the date of this FDD, we have approved two insurance vendors and we will not approve other insurance vendors this year. If you fail to procure or maintain the insurance coverage required by the Franchise Agreement, we have the right to procure such insurance for you and you shall be responsible for reimbursing us for all costs, including premiums and any applicable administrative costs. If you fail to procure or maintain the required insurance coverage or fail to reimburse us, then we may consider such failure a default of the Franchise Agreement, which will expose you to penalties associated with such default, as discussed in the Operations Manual.
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, Brain Balance and its parent and affiliate companies must be named as an additional insured on all lines of coverage, except for workers compensation. This means that franchisees are not required to include Brain Balance as an additional insured on their workers' compensation policies. This exception is explicitly stated in the FDD, providing clarity on this specific insurance requirement.
Beyond workers' compensation, Brain Balance mandates that franchisees maintain several other insurance policies, including commercial general liability insurance ($1,000,000 per occurrence and $3,000,000 in the aggregate), professional liability coverage ($1,000,000 per occurrence and $3,000,000 in the aggregate), abuse and molestation coverage ($1,000,000 per occurrence and $3,000,000 in the aggregate), cyberliability coverage (at least $500,000), employment practices liability insurance ($1,000,000 per occurrence), and commercial automobile liability insurance ($1,000,000 combined single limit). Brain Balance and its affiliates must be named as additional insureds on all of these lines of coverage.
Brain Balance requires franchisees to obtain these insurance policies through their approved insurance vendors, unless otherwise required by law. Franchisees must provide Brain Balance with certificates of insurance and give at least 30 days' notice before terminating or altering any required insurance coverage. Failure to maintain the required insurance can result in Brain Balance procuring the insurance on the franchisee's behalf, with the franchisee responsible for all costs. Non-compliance can also be considered a default of the Franchise Agreement, leading to potential penalties.