Can Healthsource Chiropractic increase or decrease the required amounts of insurance coverage during the term of the agreement?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
- h. In addition to the requirements of the foregoing paragraphs of this Paragraph 10.8, you must maintain any and all insurance coverage in such amounts and under such terms and conditions as may be required in connection with your lease or purchase of the Premises.
- i. The insurance HealthSource Chiropractic requires is for its own protection. You should consult with your own insurance agents, brokers, and attorneys to determine what types of coverages and what level of insurance protection you may need or desire, in addition to the coverages and minimum limits specified by HealthSource Chiropractic. Your obligation to maintain insurance coverage as described in this Agreement will not be reduced in any manner by reason of any separate insurance we maintain on our own behalf, nor will our maintenance of that insurance relieve you of any obligations under this Agreement.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, Healthsource Chiropractic mandates that franchisees maintain specific insurance coverage both before opening their franchise and throughout the agreement's term. This includes comprehensive commercial general liability and motor vehicle liability insurance.
Healthsource Chiropractic retains the right to adjust the required insurance coverage amounts and terms during the franchise agreement. Additionally, franchisees must adhere to insurance requirements stipulated in their premises lease or purchase agreements. Franchisees are advised to consult with their own insurance professionals to determine appropriate coverage levels beyond Healthsource Chiropractic's minimum requirements.
It's important to note that the insurance coverage required by Healthsource Chiropractic is primarily for their own protection, and franchisees remain responsible for any losses, damages, or liabilities arising from the operation of the franchise. Franchisees are obligated to indemnify Healthsource Chiropractic against any claims, losses, or damages, even after the termination or expiration of the franchise agreement. Franchisees must also maintain any and all insurance coverage in such amounts and under such terms and conditions as may be required in connection with your lease or purchase of the Premises.