Under what circumstances may a Brain Balance franchisee be required to obtain new insurance certificates naming the franchisor or third parties as additional insureds?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
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 deliver program at a location other than the primary Brain Balance Center.
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, a franchisee may be required to obtain new insurance certificates naming Brain Balance or third parties as additional insureds under specific circumstances. These circumstances include off-site events such as conventions or trade shows. Additionally, if a Brain Balance center has been approved to deliver its program at a location other than the primary Brain Balance Center, new certificates may be required.
Brain Balance also requires that the franchisee and its parent and affiliate companies must be named as an additional insured on all lines of coverage, with the exception of workers' compensation. Upon request, Brain Balance must be provided with Certificates of Insurance in place at the franchisee's center. Franchisees are required to obtain insurance through one of Brain Balance's approved insurance vendors and must give at least 30 days prior notice before terminating, non-renewing, or materially altering any of the required insurance coverages.
It is important to note that Brain Balance may modify or increase the insurance limits of liability required for all centers during the term of the agreement due to changes in experience, market conditions, and regulatory or legal changes that could increase exposure. Franchisees must comply with these new standards. If any legal action arises from the operations of the franchised business that is not covered by insurance, exceeds policy limits, or falls below deductible minimums, the franchisee will be required to indemnify Brain Balance.