What are some reasons Focalpoint Coaching might increase the required insurance coverage amounts?
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 franchisees must maintain comprehensive public liability, general liability, product liability, and motor vehicle liability insurance. The minimum liability coverage is determined by Focalpoint Coaching and may change over time.
Focalpoint Coaching may periodically increase the required coverage amounts or require different or additional insurance coverages. These changes can occur to reflect inflation, the identification of new risks, changes in law or standards of liability, higher damage awards, or other relevant changes in circumstances.
Additionally, the required coverage must include a waiver of subrogation against Focalpoint Coaching by the insurers, and the franchisee must waive rights of recovery against Focalpoint Coaching. This means that the franchisee's insurance company cannot sue Focalpoint Coaching to recover any payments made to cover a claim, and the franchisee also gives up their right to sue Focalpoint Coaching for damages.