What section of the Degree Wellness Franchise Agreement discusses the franchise owner's obligations regarding insurance?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the existence of such insurance, you are and will be responsible for all loss or damage and contractual liability to third persons originating from or in connection with the operation of the Franchise, and for all claims or demands for damages to property or for injury, illness or death of persons directly or indirectly resulting therefrom; and you agree to defend, indemnify and hold us harmless of, from, and with respect to any such claims, loss or damage, which indemnity shall survive the termination or expiration and non-renewal of this Agreement.
- h. In addition to the requirements of the foregoing paragraphs of this Paragraph 10.8, you must maintain any and all insurance coverage in such amounts and under such terms and conditions as may be required in connection with your lease or purchase of the Premises.
- 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)
According to the 2025 Degree Wellness Franchise Disclosure Document, Paragraph 10.8 outlines the franchisee's obligations regarding insurance. This section mandates that franchisees maintain specific insurance coverage, and clarifies that this insurance is primarily for Degree Wellness's protection.
The FDD emphasizes that franchisees are responsible for any losses, damages, or contractual liabilities to third parties arising from the franchise's operation. This includes claims related to property damage, injury, illness, or death. Franchisees are obligated to defend, indemnify, and hold Degree Wellness harmless from such claims, even after the franchise agreement terminates or expires.
Furthermore, franchisees must maintain insurance coverage as required by their lease or purchase agreements for the premises. Degree Wellness advises franchisees to consult with their own insurance professionals to determine appropriate coverage levels beyond the minimums Degree Wellness specifies. The document also clarifies that any insurance Degree Wellness maintains does not reduce the franchisee's insurance obligations, nor does it relieve the franchisee of their responsibilities under the agreement.