What is the minimum amount of notary professional liability insurance required for an Annex Brands franchise, or what is the maximum permitted by the state if less than that amount?

According to Annex Brands' 2025 Franchise Disclosure Document, franchisees are required to maintain notary professional liability insurance. The minimum coverage required is $500,000, but there is a condition. If the maximum amount of notary professional liability insurance permitted by the state where the franchise is located is less than $500,000, the franchisee is only required to obtain the maximum amount allowed by that state.

This requirement ensures that Annex Brands franchisees who offer notary services have adequate coverage to protect against potential liabilities arising from errors or omissions in their notarial acts. The provision allowing for a lower coverage amount if mandated by state law acknowledges that insurance regulations vary across different jurisdictions. This ensures compliance with local laws while still providing a baseline level of protection.

For a prospective Annex Brands franchisee, it is crucial to investigate the specific notary professional liability insurance requirements in their state. If the state mandates a maximum coverage amount lower than $500,000, the franchisee will only need to obtain the state-mandated maximum. This could potentially lower insurance costs for franchisees in those states. Conversely, franchisees should be prepared to secure the full $500,000 coverage if their state permits or requires it.

It's also important to note that Annex Brands retains the right to increase the minimum coverage amounts required for insurance policies in the future. Franchisees should stay informed of any changes to insurance requirements to maintain compliance with the Franchise Agreement.