What insurance requirements must a Focalpoint Coaching franchisee meet?
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 must secure and maintain several insurance policies. Within 30 days of the agreement's effective date and throughout its term, the franchisee is required to have comprehensive public liability, general liability, product liability, and motor vehicle liability insurance. These policies should protect against claims related to bodily and personal injury, death, and property damage that may arise from the operation of the Focalpoint Coaching franchised business.
The specific minimum liability coverage amounts are determined and prescribed by Focalpoint Coaching and may be adjusted periodically. Focalpoint Coaching retains the right to increase coverage amounts or require different or additional insurance types. These changes can occur due to factors like inflation, the identification of new risks, changes in laws or liability standards, or higher damage awards. Additional coverages may include reasonable excess liability insurance and employment practices liability insurance.
The insurance policies must include a waiver of subrogation against Focalpoint Coaching, meaning the insurance company cannot pursue Focalpoint Coaching to recover any claims paid out. The franchisee must also waive any rights of recovery against Focalpoint Coaching. These requirements ensure that both the franchisee and Focalpoint Coaching are protected from potential liabilities associated with the business operations.