If Focalpoint Coaching obtains insurance for a franchisee, what costs is the Focalpoint Coaching franchisee responsible for?
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 responsible for the costs of maintaining their own insurance. Specifically, the franchisee must maintain comprehensive public liability, general liability, product liability, and motor vehicle liability insurance.
The franchisee is responsible for the expenses associated with these insurance policies, including any increases in coverage amounts or additional insurance coverages that Focalpoint Coaching may require. These changes could be due to inflation, new risks, changes in law, or higher damage awards.
The franchisee must ensure that these insurance policies include a waiver of subrogation against Focalpoint Coaching and must also waive any rights of recovery against Focalpoint Coaching. This requirement ensures that Focalpoint Coaching is protected from any claims or liabilities related to the franchisee's business operations.