What are the minimum liability coverage requirements for professional liability (malpractice) insurance for each doctor practicing in a Degree Wellness franchise?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
ically 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 practicing in your Franchise business, having limits of not less than
$1,000,000 per occurrence and $3,000,000 in the aggregate and (4) any other insurance required by applic
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 secure professional liability (malpractice) insurance for each doctor practicing within their franchise. The minimum liability coverage must not be less than $1,000,000 per occurrence and $3,000,000 in the aggregate.
This requirement ensures that Degree Wellness franchisees are adequately protected against potential malpractice claims arising from the medical services provided at their franchise locations. Franchisees must maintain this coverage to comply with the franchisor's standards and legal obligations. The FDD stipulates that failure to obtain or maintain the specified insurance coverage may allow the franchisor to obtain the insurance on behalf of the franchisee, as detailed in Item 6.
Prospective Degree Wellness franchisees should factor in the cost of professional liability insurance when assessing the overall financial investment required to start and operate the franchise. They should also consult with insurance agents and attorneys to determine the appropriate level of coverage needed beyond the minimum requirements set by Degree Wellness. Understanding these insurance obligations is crucial for managing risk and ensuring the long-term viability of the franchise.