Who reviews and approves the deductibles for Degree Wellness franchisee's insurance policies?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
cing 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 applicable law, rule, regulation, ordinance or licensing requirements. Deductibles must be in reasonable amounts and are subject to review and written approval by us. Your commercial general liability insurance policy must be an "occurrence" policy. If any policy is written on a "Claims Made" basis, you must purchase and maintain unlimited tail coverage that shall remain in effect following the termination or expiration of the Franchise Agreement and/or such policy. All commercial general liability insurance and professional liability (malpractice) insurance policies you purchase must name us (and, if we so request, our members, directors, employees, agents, and affiliates) as additional insureds. If you fail to obtain or maintain the insurance we specify, we may (but need not) obtain the insurance for you and the Studio on your behalf (see Item 6). 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 us. The cost of your premiums will depend on the insurance carrier's char
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, the franchisor reviews and provides written approval for the deductibles on the franchisee's insurance policies. Degree Wellness requires franchisees to obtain and maintain specific insurance coverage, including commercial general liability and motor vehicle liability insurance with minimum coverage of $1,000,000 per occurrence and $3,000,000 in the aggregate, worker's compensation and employer's liability insurance as required by law, and professional liability (malpractice) insurance for each doctor practicing in the franchise business.
The FDD specifies that the deductibles must be in reasonable amounts and are subject to review and written approval by Degree Wellness. Additionally, Degree Wellness must be named as an additional insured on the franchisee's 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.
Prospective Degree Wellness franchisees should consult with their own insurance agents, brokers, and attorneys to determine the types and levels of insurance protection needed, in addition to the minimum requirements set by Degree Wellness. The cost of premiums will vary depending on the insurance carrier's charges, terms of payment, and the franchisee's insurance and payment histories. This requirement ensures that franchisees maintain adequate insurance coverage to protect both their business and Degree Wellness from potential liabilities.