Which section of the Healthsource Chiropractic Franchise Agreement specifies insurance requirements?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
oyer twice the employee's annual salary, plus all costs and attorneys' fees incurred as a result of the violation. This amount is set at twice the employee's annual salary because it is a reasonable estimation of the damages that would occur from such a breach, and it will almost certainly be impossible to calculate precisely the actual damages from such a breach).
10.8 Insurance
a. Before you open the Franchise and during any Term of this Agreement, you must maintain in force, under policies of insurance issued by carriers in good standing in the state where your clinic is located: (1) comprehensive commercial general liability and motor vehicle liability insurance against claims for bodily and personal injury, death and property damage
caused by or occurring in conjunction with the operation of the Franchise or otherwise in conjunction with your conduct of the Franchise business pursuant to this Agreement, under one or more policies of insurance containing minimum liability coverage of not less than $1,000,000 per occurrence and $3,000,000 in the aggregate; (2) worker's compensation and employer's liability insurance as required by law, with limits equal to or in excess of those required by statute;
Source: Item 9 — Franchisee's Obligations (FDD pages 32–34)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, section 10.8 of the Franchise Agreement outlines the insurance requirements for franchisees. This section mandates that franchisees must maintain specific insurance policies from reputable carriers in their clinic's state.
The required insurance includes comprehensive commercial general liability and motor vehicle liability coverage to protect against claims of bodily injury, death, and property damage. Additionally, franchisees must adhere to any insurance requirements stipulated in their lease or purchase agreements for the premises.
Healthsource Chiropractic emphasizes that the required insurance is primarily for its own protection, and franchisees should consult with their own insurance professionals to determine appropriate coverage levels beyond the minimums specified by Healthsource Chiropractic. Franchisees are responsible for all losses, damages, and contractual liabilities, regardless of their insurance coverage, and must indemnify Healthsource Chiropractic against any related claims.