When must a C3 Wellness Spa franchisee furnish a certificate of insurance?

According to C3 Wellness Spa's 2024 Franchise Disclosure Document, a franchisee must furnish a certificate of insurance to the company at the earlier of two dates. These dates are either 90 days after the effective date of the Franchise Agreement or prior to the commencement of the initial training program.

This requirement ensures that C3 Wellness Spa franchisees have adequate insurance coverage in place before they begin operations or participate in training. The insurance policies must be written by a responsible carrier acceptable to C3 Wellness Spa, and the company, along with its officers, directors, and other related parties, must be named as additional insureds (excluding workers' compensation).

The insurance carrier must provide C3 Wellness Spa with at least 30 days' prior written notice if there are any material alterations to or cancellation of any insurance policy. This allows C3 Wellness Spa to ensure continuous coverage and mitigate potential risks associated with uninsured operations. Franchisees are also required to consult with their insurance carrier to determine the necessary level of coverage for their specific business, as higher exposures may require higher limits.

C3 Wellness Spa mandates specific minimum insurance coverage, including coverage against physical loss or damage to property, comprehensive general liability insurance of at least $2,000,000 per occurrence and $6,000,000 in the aggregate, statutory workers' compensation insurance, business interruption insurance, commercial umbrella liability insurance of at least $1,000,000, cyber insurance of at least $1,000,000, employment practices liability insurance of at least $2,000,000, and professional liability malpractice insurance for all medical providers with a limit of at least $1,000,000 per claim and $3,000,000 annual aggregate. Franchisees must also maintain any other insurance required in the Manual or by law or lease for their Spa Location Franchise.