What is the minimum aggregate liability coverage required for an Annex Brands franchise?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
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To ensure adequate insurance coverage, Subsection 9.I of the franchise agreement requires you to obtain and maintain in force, at your sole expense, under policies of insurance issued by carriers with no less than a Best's rating of A, the following:
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- Comprehensive general, public, and product liability insurance, against claims for bodily and personal injury, death, and property damage caused by or occurring in conjunction with the operation of your retail center or otherwise in conjunction with your conduct of business under the franchise agreement, under 1 or more policies of insurance containing a minimum of $2,000,000 per occurrence and $4,000,000 aggregate liability coverag
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 39–43)
What This Means (2025 FDD)
According to Annex Brands's 2025 Franchise Disclosure Document, franchisees are required to maintain comprehensive general, public, and product liability insurance. This insurance must protect against claims related to bodily injury, personal injury, death, and property damage that occur due to the operation of the retail center or business activities under the franchise agreement.
The minimum coverage required is $2,000,000 per occurrence and $4,000,000 in aggregate liability coverage. These policies must be issued by insurance carriers with a Best's rating of A or higher, ensuring the financial stability and reliability of the insurer.
In addition to the general liability coverage, Annex Brands franchisees must also maintain other types of insurance, including notary professional liability insurance, property insurance, business interruption coverage, and motor vehicle liability insurance. The specific amounts and types of coverage may vary depending on the services offered by the franchise location, such as expanded services for household moving and relocation.