What professional liability coverage must the PC obtain and maintain for a Dermani Medspa franchise?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
($3,000,000) annual aggregate;
- (g) property insurance providing coverage for direct physical loss or damage to real and personal property for all risk perils, including the perils of flood and earthquake, with minimum limits of Two Hundred Thousand Dollars ($200,000); and
- (h) any insurance required by the terms of your lease or that we may require in the future.
- 8.6.3. In addition, you must arrange for the PC to obtain and maintain professional liability coverage with limits of at least One Million Dollars ($1,000,000) for each incident and Three Million Dollars ($3,000,000) annually for itself and naming you and us as an additional insured. You may also carry this insurance for your PC if the insurance provides the pr
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, the Professional Corporation (PC) operating the Medspa must secure and maintain professional liability insurance. This coverage must have minimum limits of $1,000,000 for each incident and $3,000,000 annually. This insurance protects the PC, the franchisee, and Dermani Medspa from potential liabilities arising from the medical services provided at the Medspa.
The franchisee is also named as an additional insured on the PC's professional liability policy, along with Dermani Medspa itself. This provides an extra layer of protection for the franchisee's business. The franchisee has the option to carry this insurance for their PC if the insurance provides the required protections.
Dermani Medspa retains the right to increase the required coverage amounts or mandate different or additional insurance coverage to reflect factors such as inflation, new risks, changes in laws, or higher damage awards. It is important for prospective franchisees to understand these insurance requirements and factor the costs into their financial projections. Maintaining adequate insurance coverage is crucial for protecting the business and mitigating potential financial risks.