If Degree Wellness obtains insurance coverage on behalf of a franchisee, is the franchisee responsible for reimbursing Degree Wellness for the costs or premiums?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- i. The insurance Degree Wellness requires is for its own protection. You should consult with your own insurance agents, brokers, and attorneys to determine what types of coverages and what level of insurance protection you may need or desire, in addition to the coverages and minimum limits specified by Degree Wellness. Your obligation to maintain insurance coverage as described in this Agreement will not be reduced in any manner by reason of any separate insurance we maintain on our own behalf, nor will our maintenance of that insurance relieve you of any obligations under this Agreement.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
Based on the 2025 FDD, Degree Wellness requires franchisees to maintain specific insurance coverage. The insurance that Degree Wellness secures is primarily for its own protection. Degree Wellness franchisees should consult with their own insurance professionals to determine the types and levels of coverage they need, in addition to what Degree Wellness mandates.
The FDD states that a Degree Wellness franchisee's obligation to maintain insurance coverage as described in the agreement will not be reduced if Degree Wellness maintains separate insurance. Furthermore, Degree Wellness's maintenance of insurance does not relieve the franchisee of any obligations under the agreement.
Therefore, while Degree Wellness may obtain insurance, the franchisee remains responsible for understanding and maintaining adequate coverage, and the franchisee's obligations are not lessened by any insurance Degree Wellness holds. The FDD does not explicitly state whether the franchisee would be responsible for reimbursing Degree Wellness for premiums if Degree Wellness obtains insurance on their behalf, but it emphasizes the franchisee's independent responsibility for insurance.