Who must Focalpoint Coaching franchisees name as additional insureds on their insurance policies?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
These insurance policies must name Franchisor, any affiliates Franchisor designates and the Indemnified Parties (as identified in Subsection 16.D below) as additional named insureds for claims arising from the Franchised Business' operation and provide for thirty (30) days' prior written notice to Franchisor of a policy's material modification, cancellation or expiration. These insurance policies must be primary to and without right of contribution from any other insurance policy purchased by Franchisor or any other Indemnified Party; must not limit or reduce coverage for Franchisee if there is a claim by Franchisor or any one or more of the other Indemnified Parties; and must extend to and provide indemnity for all of Franchisee's indemnification obligations to Franchisor and the other Indemnified Parties under this Agreement.
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 specific insurance policies and name certain parties as additional insureds. These insurance policies must include comprehensive public liability, general liability, product liability, and motor vehicle liability coverage. The policies protect against claims for bodily and personal injury, death, and property damage that may arise from the operation of the Focalpoint Coaching franchised business.
Specifically, Focalpoint Coaching, any affiliates that Focalpoint Coaching designates, and the Indemnified Parties (as defined in Subsection 16.D of the franchise agreement) must be named as additional insureds on these policies. This requirement ensures that these parties are protected against claims arising from the franchisee's business operations. Additionally, the insurance policies must provide for thirty days' prior written notice to Focalpoint Coaching in the event of a material modification, cancellation, or expiration of the policy.
The insurance coverage obtained by the Focalpoint Coaching franchisee must be primary and without the right of contribution from any other insurance policy purchased by Focalpoint Coaching or any other Indemnified Party. This means that the franchisee's insurance will be the first to respond to any claims, without requiring contribution from other policies. The policies must also not limit or reduce coverage for the franchisee if there is a claim by Focalpoint Coaching or any of the other Indemnified Parties, and must extend to and provide indemnity for all of the franchisee's indemnification obligations to Focalpoint Coaching and the other Indemnified Parties under the agreement.
It is important for prospective Focalpoint Coaching franchisees to understand these insurance requirements, as failure to comply can result in a breach of the franchise agreement. Franchisees must also provide Focalpoint Coaching with copies of their Certificates of Insurance or other evidence of coverage no later than ten days before commencing operations, and annually thereafter. Franchisees should consult with an insurance professional to ensure they obtain the appropriate coverage and comply with all requirements outlined in the Franchise Agreement.