Is cyber insurance required for a 7 Brew franchise, and if so, up to what amount?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
licy or policies.
You currently must have the following minimum insurance coverage: (i) commercial general liability insurance (including product, contractual, and owned and non-owned vehicle liability coverages) in minimum amounts of $2,000,000, aggregate single limit coverage; (ii) "All Risk" property damage insurance; (iii) plate glass insurance and boiler insurance (if applicable);
(iv) employer's liability, workers' compensation, and such statutory insurance as may be required in the state in which the Store is located; and (v) employment practices liability insurance with a limit of not less than $1,000,000 per occurrence and $1,000,000 aggregate. We recommend a $5 million umbrella coverage and cyber-insurance up to $1,000,000. You also must obtain and maintain all other insurance required under app
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 27–32)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, cyber insurance is not explicitly required but is recommended. While 7 Brew mandates several types of insurance coverage, including commercial general liability insurance, property damage insurance, and worker's compensation, it only recommends that franchisees obtain cyber insurance.
The FDD states that 7 Brew recommends franchisees carry cyber insurance up to $1,000,000. This suggests that while not mandatory, 7 Brew sees value in protecting franchisees from potential cyber threats, which is a growing concern for businesses of all sizes.
Prospective franchisees should consider the recommendation for cyber insurance seriously, evaluating the potential risks and costs associated with data breaches and cyberattacks. While the franchisor only recommends coverage up to $1,000,000, franchisees should assess their individual needs and risk tolerance to determine if higher coverage is appropriate.