What is the minimum amount of personal property insurance coverage required for an Apricot Lane franchise?
Apricot_Lane Franchise · 2025 FDDAnswer 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 required insurance.
Advertising
Before using them, you must send us, for our approval, samples of all advertising, promotional and marketing materials for the Store that we have not prepared or previously approved. You must also implement a grand opening marketing and advertising program according to our requirements.
Construction
You are responsible for developing the Store at your expense. It is your responsibility to prepare all required construction and remodeling plans and specifications in accordance with applicable law. You must submit all construction and remodeling plans and specifications to us for any approval before beginning build-out. Our review is limited to ensuring your compliance with design requirements. Our review is not designed to assess compliance with laws or regulations as such compliance is your responsibility.
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 personal property insurance coverage. The minimum required coverage is $75,000, but this amount may need to be higher if the franchisee chooses to open with a higher inventory level. This insurance protects the franchisee's assets within the store, such as merchandise, fixtures, and equipment, against risks like theft, fire, or natural disasters.
In addition to personal property insurance, Apricot Lane requires franchisees to carry several other types of insurance, including comprehensive general liability insurance of $1,000,000 per occurrence, automobile liability coverage of $1,000,000, and an umbrella policy providing excess coverage of $1,000,000. They must also carry worker's compensation insurance in amounts required by applicable law and business interruption insurance of either the actual loss sustained or $50,000, whichever is greater. Franchisees must also obtain stop gap coverage where applicable and stretch endorsements for crime, employee dishonesty, and accounts receivable. The franchisee is also responsible for any other insurance required by the state or locality in which the franchised business is located.
The insurance policies must be written by an insurance company licensed in the state where the franchisee operates and have at least an "A" rating classification as indicated in Best's Key rating guide. Apricot Lane has designated InterWest Insurance Services as its preferred provider, and franchisees are required to obtain a quote from them. However, franchisees can solicit quotes from other insurance companies, and InterWest will be given the right to match any other quotes. If InterWest provides competitive prices, franchisees are required to use their services.
Apricot Lane may modify the minimum insurance limits by written notice to the franchisee as conditions require. If a franchisee fails to procure and maintain the required insurance, Apricot Lane may immediately procure insurance coverage and charge the franchisee for the cost, plus a reasonable fee. This ensures that both the franchisee and Apricot Lane are protected against potential liabilities and losses associated with the operation of the business.