Cherry Creek Insurance, one of the nation’s top independent insurance agencies, announced today that Massage Heights, a fast-growing massage therapy franchise, has joined a growing list of franchise organizations to invest in Cherry Creek’s franchisor litigation insurance â€“ a rare form of insurance protection offered by only a handful of firms specializing in this niche coverage nationwide.
The coverage ultimately protects franchisors from a wide variety of lawsuits. In addition to paying covered claims, the policy covers legal defense costs related to the covered claims. Defense costs from one of these lawsuits can cost as much as the franchisor litigation insurance policy annual policy premium in just four to five months, said Scott Carlson, Cherry Creek’s Director of Management Liability.
According to Massage Heights CEO Glenn Franson, the growing chain of massage therapy retreats grossed more than $7 million in 2007 revenues, up from $3 million in 2006. As the franchise system continues to expand around the country, he decided to take the proactive step to implement franchisor litigation insurance as a way to protect the company’s hard earned assets from potential litigation matters in the future.
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