What professional liability coverage must the PC arrange for, and maintain, for a Dermani Medspa franchise?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
nder this Agreement and in the Manuals.
- 8.6.4. We may periodically increase the amounts of coverage required under these insurance policies and/or require different or additional insurance coverage at any time to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards or other relevant changes in circumstances. We, dermani MEDSPA® Franchising LLC and our parent company LazCoz LLC, must be named as an additional insured on a primary and non-contributory basis on the following policies: commercial general liability insurance, automobile liability insurance, Professional liability, and umbrella liability insurance. The insurance policies must provide for thirty (30) days' prior written notice to us of a policy's material modification, cancellation or expiration. You must routinely furnish us copies of your certificates of insurance or other evidence of your maintaining this insurance coverage and payment of premiums, including without limitation, completed policy endorsements. If you fail or refuse to obtain and maintain the insurance we specify, in addition to our other remedies, we may obtain comparable insurance for you and the Franchised Business on your behalf, in which event you shall cooperate with us and reimburse us for all premiums, costs and expenses we incur in obtaining and maintaining the insurance, plus a ten percent (10%) administrative fee for our time incurred in obtaining the insurance.
8.7. Compliance with System Standards.
8.7.1.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to the 2025 Dermani Medspa FDD, the franchisee's professional corporation (PC) must arrange for and maintain professional liability insurance. Dermani Medspa Franchising LLC and its parent company, LazCoz LLC, must be named as additional insured on a primary and non-contributory basis on this policy.
The insurance policies must provide for thirty (30) days' prior written notice to Dermani Medspa of a policy's material modification, cancellation, or expiration. The franchisee must routinely furnish Dermani Medspa with copies of their certificates of insurance or other evidence of maintaining this insurance coverage and payment of premiums, including completed policy endorsements.
Dermani Medspa retains the right to periodically increase the amounts of coverage required under these insurance policies and/or require different or additional insurance coverage at any time to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards or other relevant changes in circumstances. If the franchisee fails to obtain and maintain the specified insurance, Dermani Medspa may obtain comparable insurance on their behalf, with the franchisee responsible for reimbursing all premiums, costs, and expenses incurred, plus a ten percent (10%) administrative fee.