What evidence of insurance coverage and premium payment is required by Focalpoint Coaching from the franchisee?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
Within thirty (30) days after the Effective Date and during the term of this Agreement Franchisee must maintain in force at Franchisee's sole expense comprehensive public liability, general liability, product liability and motor vehicle liability insurance against claims for bodily and personal injury, death and property damage caused by or occurring in connection with the Franchised Business' operation, all containing the minimum liability coverage Franchisor prescribes from time to time. Franchisor may periodically increase the amounts of coverage required under these insurance policies and/or require different or additional insurance coverages (including reasonable excess liability insurance and employment practices liability insurance) 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. Required coverage shall include insurers' waiver of subrogation against Franchisor and Franchisee shall waive rights of recovery against Franchisor.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, franchisees are required to maintain comprehensive insurance coverage. Within 30 days of the franchise agreement's effective date, the franchisee must secure and maintain, at their own expense, comprehensive public liability, general liability, product liability, and motor vehicle liability insurance. This insurance is intended to cover claims related to bodily and personal injury, death, and property damage that may arise from the operation of the Focalpoint Coaching franchised business.
The specific minimum liability coverage amounts are determined and periodically adjusted by Focalpoint Coaching. The franchisor retains the right to increase coverage amounts or require different or additional insurance types, including excess liability and employment practices liability insurance, to reflect factors like inflation, new risks, changes in laws, or higher damage awards.
Furthermore, the required insurance coverage must include a waiver of subrogation against Focalpoint Coaching, meaning the insurance company cannot pursue Focalpoint Coaching to recover any claims paid out. The franchisee must also waive their rights of recovery against Focalpoint Coaching. The FDD does not specify the exact documentation required to prove insurance coverage and premium payment, so a prospective franchisee should clarify these requirements with Focalpoint Coaching.