What must a C3 Wellness Spa Practice ensure regarding the insurance policies for medical equipment?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
- (e) Insurance; Risk of Loss. During the Term, Practice must maintain insurance 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.
Practice's insurer must agree, by endorsement upon the policy issued by it, or by an independent document provided to Manager, that it will give Manager 30 days prior written notice of the effective date of any alteration or cancellation of such policy and that such notice will be sent to Manager via certified mail, return receipt requested at the address in this Agreement.
Except as otherwise provided in this Agreement, Practice assumes the risk of loss of, or damage to the Medical Equipment from any and every cause whatsoever, including, but not limited to, casualty, collision, upset, fire, theft, malicious mischief, vandalism, graffiti, glass breakage, and mysterious disappearance.
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
According to C3 Wellness Spa's 2024 Franchise Disclosure Document, the Practice (the franchisee) must maintain insurance coverage for the full value of the medical equipment. This insurance must also cover liability for bodily injury, including death, and property damage arising from the ownership, maintenance, use, and operation of the medical equipment. The insurance coverage limits must be acceptable to the Manager.
Furthermore, the C3 Wellness Spa Practice must ensure that the insurance policies name the Manager as an additional insured and provide a waiver of subrogation in favor of the Manager. The form of coverage must be acceptable to the Manager, and the Practice must deliver all insurance policies or evidence of coverage to the Manager upon request.
The insurance provider must agree to give the Manager 30 days' prior written notice, sent via certified mail with return receipt requested, before any alteration or cancellation of the policy takes effect. The Practice also assumes the risk of loss or damage to the medical equipment from any cause, including casualty, collision, fire, theft, vandalism, or mysterious disappearance, unless otherwise provided in the agreement.
This requirement ensures that C3 Wellness Spa's Manager is protected financially in case of accidents, damages, or liabilities related to the medical equipment used in the Practice. The franchisee bears the responsibility of maintaining adequate insurance and ensuring that the Manager's interests are secured, which is a common practice in franchise agreements involving leased equipment.