What are the minimum limits for automobile liability insurance required for a Dermani Medspa franchise, including owned, hired, and non-owned vehicle coverage?

According to Dermani Medspa's 2025 Franchise Disclosure Document, franchisees are required to maintain automobile liability insurance. This insurance must include coverage for owned, hired, and non-owned vehicles. The minimum combined single limit for this coverage is $1,000,000 per occurrence. This requirement ensures that the Dermani Medspa franchise has adequate financial protection in case of an accident involving a vehicle used in the business.

Maintaining the required insurance coverage is a condition of the franchise agreement. Dermani Medspa requires to be named as an additional insured on a primary and non-contributory basis on the automobile liability insurance policy. Franchisees must also provide Dermani Medspa with thirty days' prior written notice if there are any material modifications, cancellations, or expirations of the policy.

Franchisees must routinely provide Dermani Medspa with copies of their certificates of insurance or other evidence of maintaining the required coverage and payment of premiums, including completed policy endorsements. If a franchisee fails to maintain the specified insurance, Dermani Medspa has the right to obtain comparable insurance on behalf of the franchisee and the franchised business. In such cases, the franchisee is responsible for reimbursing Dermani Medspa for all premiums, costs, and expenses incurred, plus a 10% administrative fee.

Dermani Medspa also retains the right to periodically increase the required coverage amounts or require different or additional insurance coverage to reflect inflation, new risks, changes in law, standards of liability, higher damage awards, or other relevant changes in circumstances. This ensures that the insurance coverage remains adequate over time.