What is the minimum required Commercial General Liability coverage limit per occurrence for an Aplus franchise?

According to Aplus's 2024 Franchise Disclosure Document, franchisees are required to maintain Commercial General Liability insurance. The minimum coverage required is $500,000 combined single limit per occurrence, regardless of whether the Aplus store is leased or non-leased.

In addition to the Commercial General Liability coverage, Aplus franchisees must also carry Workers’ Compensation at statutory limits and Employer’s Liability insurance with a minimum of $500,000 per accident, $500,000 disease-policy limit, and $500,000 disease-per employee. Aplus also requires Excess Liability coverage of $1,000,000 per occurrence in excess of other stated coverage; however, this may be waived if the franchisee carries $1,500,000 General Liability coverage.

Aplus requires that franchisees provide a certificate of insurance coverage prior to the commencement of the Aplus Agreement. This certificate must be satisfactory to Sunoco and a renewal certificate must be furnished no later than seven days before each policy renewal date. The certificate must also include a provision that the policies cannot be canceled or materially changed without prior written notice to Sunoco. Failure to maintain the required insurance coverage is considered a material breach of the Aplus Franchise Agreement, potentially leading to the suspension of motor fuel deliveries to the Aplus store.

Prospective franchisees should factor these insurance requirements into their initial investment and ongoing operating expenses. It is also important to note that Aplus reserves the right to change its insurance requirements, including the types of coverage and amounts, over time. If operating a Captive Market Aplus Store, franchisees may be required to maintain additional insurance coverage separate from what is outlined in Item 8.