If Focalpoint Coaching obtains insurance on behalf of a franchisee, is the franchisee required to cooperate?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee fails or refuses to obtain and maintain the insurance Franchisor specifies, in addition to Franchisor's other remedies, Franchisor may (but need not) obtain such insurance for Franchisee and the Franchised Business on Franchisee's behalf, in which event Franchisee shall cooperate with Franchisor and reimburse Franchisor for all premiums, costs and expenses Franchisor incurs in obtaining and maintaining the insurance, plus a reasonable fee for Franchisor's time incurred in obtaining such insurance. If Franchisor obtains such insurance for Franchisee and the Franchised Business on Franchisee's behalf, Franchisee must furnish all information necessary to obtain and maintain such insurance within five (5) days of Franchisor's request.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, if a franchisee fails to obtain and maintain the required insurance, Focalpoint Coaching has the option to obtain the insurance on behalf of the franchisee. In such instances, the franchisee is required to cooperate with Focalpoint Coaching.
This cooperation includes reimbursing Focalpoint Coaching for all premiums, costs, and expenses incurred in obtaining and maintaining the insurance, along with a reasonable fee for Focalpoint Coaching's time spent securing the insurance.
Furthermore, the franchisee must provide all necessary information to Focalpoint Coaching within five days of the request to facilitate the procurement and maintenance of the insurance. This clause ensures that Focalpoint Coaching can maintain adequate coverage for the franchised business, protecting both the franchisee and the brand from potential liabilities.