Can Focalpoint Coaching increase the required amounts of insurance coverage for its franchisees?
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, Focalpoint Coaching can periodically increase the required amounts of insurance coverage franchisees must maintain. Franchisees are required to maintain comprehensive public liability, general liability, product liability, and motor vehicle liability insurance.
Focalpoint Coaching can increase the required coverage amounts or require different or additional insurance coverages to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards, or other relevant changes in circumstances. This means a franchisee's insurance costs could increase during the term of the agreement.
The insurance policies must include insurers' waiver of subrogation against Focalpoint Coaching, and the franchisee must waive rights of recovery against Focalpoint Coaching. This protects Focalpoint Coaching from being held liable for incidents related to the franchisee's business operations and ensures Focalpoint Coaching is protected from claims.
Prospective franchisees should factor in the potential for increased insurance costs when evaluating the financial feasibility of a Focalpoint Coaching franchise. It is also important to understand the specific types and amounts of insurance required initially to accurately assess ongoing operational expenses.