What minimum liability coverage is required for comprehensive commercial general liability and motor vehicle liability insurance for Degree Wellness?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
which we or our affiliates are approved suppliers (see below).
You must obtain and maintain, at your own expense, the insurance coverage that we periodically require and satisfy other insurance-related obligations. You must purchase (1) comprehensive commercial general liability and motor vehicle liability insurance containing minimum liability coverage of not less than $1,000,000 per occurrence and $3,000,000 in the aggregate, (2) worker's compensation and employer's liability insurance as required by law, with limits equal to or in excess of those required by law, (3) professional liability (malpractice) insurance, for each doctor pract
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 26–29)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, franchisees must acquire and maintain specific insurance coverage. This includes comprehensive commercial general liability and motor vehicle liability insurance with a minimum liability coverage of $1,000,000 per occurrence and $3,000,000 in the aggregate. Additionally, franchisees are required to obtain worker's compensation and employer's liability insurance as mandated by law, with limits that meet or exceed legal requirements. They must also secure professional liability (malpractice) insurance for each doctor practicing in their Degree Wellness franchise.
The commercial general liability insurance policy must be an "occurrence" policy. If the policy is written on a "Claims Made" basis, the franchisee must purchase and maintain unlimited tail coverage that remains effective after the termination or expiration of the Franchise Agreement or the policy. Degree Wellness also requires that it (and its members, directors, employees, agents, and affiliates, if requested) be named as additional insureds on all commercial general liability and professional liability (malpractice) insurance policies.
If a franchisee fails to obtain or maintain the specified insurance, Degree Wellness has the option, but not the obligation, to obtain the insurance on behalf of the franchisee and the studio. The FDD advises franchisees to consult with their own insurance agents, brokers, and attorneys to determine the types and levels of insurance protection needed beyond the minimum requirements set by Degree Wellness. The cost of premiums will vary based on the insurance carrier's charges, payment terms, and the franchisee's insurance and payment histories. This ensures that Degree Wellness franchisees have adequate protection against potential liabilities, aligning with standard franchise practices that prioritize risk management and brand protection.