Under the Brain Balance franchise agreement, does maintaining required insurance relieve the franchisee of liability to the company?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.03. Maintenance of such insurance, and the performance by FRANCHISEE of the obligations under Section 11.02, shall not relieve FRANCHISEE of any liability to COMPANY under this Agreement, whether under the indemnity provision of this Agreement as set forth in Section 19 or otherwise.
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, maintaining the required insurance coverage does not relieve the franchisee of liability to Brain Balance under the franchise agreement. Even with proper insurance in place, a Brain Balance franchisee remains responsible for their obligations and potential liabilities to the company.
This means that franchisees cannot assume that their insurance coverage will fully protect them from all claims or liabilities. Brain Balance retains the right to seek recourse from the franchisee for breaches of contract or other liabilities, regardless of whether the franchisee has insurance.
Prospective Brain Balance franchisees should carefully review the indemnity provisions within the franchise agreement and consult with a legal professional to fully understand the scope of their potential liabilities and how they interact with the required insurance coverage. Franchisees should ensure they understand what circumstances could lead to liability, even if they maintain the required insurance.