When must a Degree Wellness franchisee provide certificates and copies of additional insured endorsements evidencing the existence of insurance?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- f. You must provide us with (i) certificates and copies of additional insured endorsements evidencing the existence of such insurance concurrently with execution of this Agreement and prior to each subsequent renewal date of each insurance policy, and (ii) upon our request stating the reason therefor (such as a claim has been filed against us), copies of the insurance policies, along with all applicable endorsements. Prior to the expiration of the term of each insurance policy, you must furnish us with appropriate certificates of insurance evidencing the renewal or replacement insurance policy and additional insured endorsements.
- g. If you at any time fail or refuse to maintain any insurance coverage required by us or to furnish satisfactory evidence thereof, then we, at our option and in addition to our other rights and remedies under this Agreement, may, but need not, obtain such insurance coverage on your behalf, and you shall reimburse us on demand for any costs or premiums paid or incurred by us.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, a franchisee must provide certificates and copies of additional insured endorsements evidencing insurance existence at specific times. These times include concurrently with the execution of the Franchise Agreement and prior to each subsequent renewal date of each insurance policy.
Additionally, Degree Wellness may request copies of the insurance policies, along with all applicable endorsements, at any time if they state a reason, such as a claim being filed against them. Prior to the expiration of each insurance policy's term, the franchisee is obligated to furnish Degree Wellness with appropriate certificates of insurance. These certificates should evidence the renewal or replacement insurance policy and additional insured endorsements.
Failure to maintain the required insurance coverage or provide satisfactory evidence of it allows Degree Wellness to obtain the necessary coverage on the franchisee's behalf. In such cases, the franchisee is responsible for reimbursing Degree Wellness for all costs or premiums incurred.