Who bears the risk of loss for the Medical Equipment during the term of the C3 Wellness Spa agreement?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
nsurance coverage for the full value of the Medical Equipment and insurance coverage against liability for bodily injury, including death, and property damage arising out of the ownership, maintenance, use and operation of the Medical Equipment with limits acceptable to Manager. Practice must ensure the policies name Manager as additional insured and provide a waiver of subrogation in favor of Manager. Such coverage must be in a form acceptable to Manager and Practice must deliver all policies of insurance, or evidence satisfactory to Manager of such coverage, upon Manager's request.
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
According to C3 Wellness Spa's 2024 Franchise Disclosure Document, the franchisee, referred to as "Practice" in the document, assumes the risk of loss or damage to the Medical Equipment during the term of the agreement. This responsibility extends to any cause, including but not limited to casualty, collision, upset, fire, theft, malicious mischief, vandalism, graffiti, glass breakage, and mysterious disappearance.
This means that if any of the listed events occur and the medical equipment is damaged or lost, the franchisee is responsible for the financial burden. It is important for prospective franchisees to understand that this responsibility exists regardless of the cause of the damage or loss.
To mitigate this risk, C3 Wellness Spa requires the franchisee to maintain insurance coverage for the full value of the Medical Equipment. Additionally, the insurance policy must include coverage against liability for bodily injury, including death, and property damage arising out of the ownership, maintenance, use, and operation of the Medical Equipment with limits acceptable to the franchisor, referred to as "Manager" in the document. The insurance policies must name the Manager as an additional insured and provide a waiver of subrogation in favor of the Manager.