factual

What is the minimum amount of comprehensive general liability insurance coverage required for an Apricot Lane franchise, per occurrence?

Apricot_Lane Franchise · 2025 FDD

Answer from 2025 FDD Document

anual or otherwise. At a minimum, you must carry: (i) comprehensive general liability insurance, including broad form contractual liability, broad form property damage, personal injury, completed operations, products liability and fire damage coverage in the amount of $1,000,000, combined single limit per occurrence, $2,000,000 general aggregate, or any greater amount required by the lessor; (ii) automobile liability coverage of owned, non-owned and hired vehicles, with coverage in amounts not less than $1,000,000, combined single coverage; (iii) an "umbrella" policy providing excess coverage in amounts not less than $1,000,000 which must be in excess of general liability, auto and employers liability; (iv) worker's compensation insurance in amounts required by applicable law; (v) personal property insurance coverage in the amount of $75,000 or greater if you open with a higher inventory level; (vi) business interruption insurance in an amount which is the greater of the actual loss sustained or $50,000; (vii) stop gap coverage where applicable; (viii) stretch endorsements for crime, employee dishonesty and accounts receivable; and (ix) any other insurance required by State or locality in which the Franchised Business is located. Minimum insurance limits may be modified, as conditions require, by written notice to you. COUNTRY VISIONS may immediately procure insurance coverage and charge the same, plus a reasonable fee, to you should you fail to procure and maintain the

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 17–20)

What This Means (2025 FDD)

According to Apricot Lane's 2025 Franchise Disclosure Document, franchisees must maintain comprehensive general liability insurance. This insurance must include broad form contractual liability, broad form property damage, personal injury, completed operations, products liability, and fire damage coverage. The minimum required coverage is $1,000,000 combined single limit per occurrence.

In addition to the per occurrence limit, Apricot Lane franchisees must also maintain a $2,000,000 general aggregate. The insurance policy must be written by an insurance company licensed in the state where the franchise operates and have at least an "A" rating classification as indicated in Best's Key rating guide.

Apricot Lane also specifies that minimum insurance limits may be modified with written notice to the franchisee. Furthermore, if a franchisee fails to procure and maintain the required insurance, Country Visions may procure the insurance coverage and charge the franchisee for the cost plus a reasonable fee. Franchisees should ensure they understand all insurance requirements and maintain adequate coverage to protect their business and comply with the franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.