Does HealthSource Chiropractic's own insurance coverage reduce a franchisee's obligation to maintain insurance coverage as described in the Franchise Agreement?

According to HealthSource Chiropractic's 2025 Franchise Disclosure Document, the franchisee's obligation to maintain insurance coverage as described in the Franchise Agreement will not be reduced due to any separate insurance that HealthSource Chiropractic maintains for its own protection. Furthermore, HealthSource Chiropractic's insurance does not relieve the franchisee of any obligations under the agreement. This means that even if HealthSource Chiropractic has its own insurance policies, franchisees must still obtain and maintain the insurance coverage required by the franchise agreement.

HealthSource Chiropractic requires insurance for its own protection, and franchisees should consult with their own insurance agents, brokers, and attorneys to determine the types and levels of insurance protection they need or desire, in addition to the minimums specified by HealthSource Chiropractic. This suggests that franchisees should not rely solely on the franchisor's insurance coverage and should proactively assess their own risks and insurance needs.

This requirement is typical in franchising, as franchisors often require franchisees to maintain their own insurance to protect both the franchisee's business and the franchisor from potential liabilities. Franchisees should carefully review the insurance requirements outlined in the Franchise Agreement and ensure they obtain adequate coverage to protect their investment and operations.