Under what conditions can Healthsource Chiropractic review and approve the deductibles for required insurance policies?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
items for which we or our affiliates are approved suppliers (see below).
You must obtain and maintain, at your own expense, the insurance coverage that we periodically require and satisfy other insurance-related obligations. You must purchase (1) comprehensive commercial general liability and motor vehicle liability 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 law, (3) professional liability (malpractice) insurance, for each doctor practicing in your Franchise business, having limits of not less than $1,000,000 per occurrence and $3,000,000 in the aggregate and (4) any other insurance required by applicable law, rule, regulation, ordinance or licensing requirements. Deductibles must be in reasonable amounts and are subject to review and written approval by us. Your commercial general liability insurance policy must be an "occurrence" policy. If any policy is written on a "Claims Made" basis, you must purchase and maintain unlimited tail coverage that shall remain in effect following the termination or expiration of the Franchise Agreement and/or such policy. All commercial general liability insurance and professional liability (malpractice) insurance policies you purchase must name us (and, if we so request, our members, directors, employees, agents, and affiliates) as additional insureds. If you fail to obtain or maintain the insurance we specify, we may (but need not) obtain the insurance for you and the Clinic on your behalf (see Item 6). 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 us. The cost of your premiums will depend on the insurance carr
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 28–32)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, franchisees must obtain and maintain required insurance coverage at their own expense. This includes comprehensive commercial general liability and motor vehicle liability insurance with minimum coverage of $1,000,000 per occurrence and $3,000,000 in the aggregate, worker's compensation and employer's liability insurance as required by law, and professional liability (malpractice) insurance for each doctor with limits of not less than $1,000,000 per occurrence and $3,000,000 in the aggregate.
The FDD specifies that deductibles for these insurance policies must be in reasonable amounts. Healthsource Chiropractic retains the right to review and provide written approval of these deductible amounts. This means that while franchisees can choose their insurance policies, Healthsource Chiropractic has the authority to ensure that the deductibles are appropriate.
If a franchisee fails to obtain or maintain the specified insurance coverage, Healthsource Chiropractic has the option, but not the obligation, to obtain the insurance on behalf of the franchisee and the clinic. Franchisees are advised to consult with their own insurance agents, brokers, and attorneys to determine the types and levels of insurance protection they may need or desire, in addition to the minimum requirements set by Healthsource Chiropractic. The cost of premiums will vary based on the insurance carrier's charges, payment terms, and the franchisee's insurance and payment histories.