What is the obligation of the parties regarding obtaining and retaining professional liability insurance at commercially reasonable rates for C3 Wellness Spa?

According to the 2024 C3 Wellness Spa Franchise Disclosure Document, both parties, the franchisee and franchisor, have obligations regarding professional liability insurance. C3 Wellness Spa and the franchisee will cooperate in obtaining and retaining professional liability insurance at commercially reasonable rates.

The franchisee is required to coordinate with C3 Wellness Spa and participate in risk management programs in conjunction with insurers. This means the franchisee must actively work with C3 Wellness Spa to find suitable insurance coverage and also take part in any risk management activities that the insurance providers require or recommend.

This arrangement suggests that C3 Wellness Spa may have established relationships with insurance providers or specific risk management protocols that franchisees must follow. By working together, C3 Wellness Spa aims to ensure that all locations maintain adequate coverage while potentially benefiting from group rates or standardized risk mitigation practices. This also ensures that the franchisee is protected from liability and potential financial losses resulting from professional services offered at their C3 Wellness Spa location.