Are Focalpoint Coaching franchisees required to waive subrogation against the franchisor?
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 policies, which include a waiver of subrogation against Focalpoint Coaching.
Specifically, within 30 days of the effective date of the Franchise Agreement and throughout its term, the franchisee must secure and maintain comprehensive public liability, general liability, product liability, and motor vehicle liability insurance. These policies must cover claims for bodily and personal injury, death, and property damage that arise from the operation of the Focalpoint Coaching franchised business. The amount of coverage must meet the minimum requirements prescribed by Focalpoint Coaching, which may be periodically increased to reflect inflation, new risks, changes in law, or higher damage awards.
The insurance coverage secured by the Focalpoint Coaching franchisee must include a waiver of subrogation against Focalpoint Coaching. Additionally, the franchisee must waive rights of recovery against Focalpoint Coaching. This means that the franchisee's insurance company cannot pursue Focalpoint Coaching to recover any payments made to cover losses. This requirement is designed to protect Focalpoint Coaching from potential claims and liabilities related to the franchisee's business operations.