What is the minimum rating classification required for the insurance company providing coverage for an Apricot Lane franchise?

According to Apricot Lane's 2025 Franchise Disclosure Document, franchisees must secure insurance policies from a company licensed in their state and possessing a minimum "A" Rating Classification as indicated in Best's Key Rating Guide. This insurance coverage must be maintained throughout the term of the Franchise Agreement.

This requirement ensures that the insurance provider is financially stable and capable of covering potential claims. The policies must protect both the franchisee and Apricot Lane, including its officers, directors, partners, and employees, against various losses and liabilities. These include commercial general liability, products liability, all-risk coverage on the franchised business, business interruption insurance, automobile liability insurance, and workers' compensation insurance.

Within 60 days of signing the Franchise Agreement, but no later than acquiring an interest in the property, franchisees must furnish Apricot Lane with a Certificate of Insurance for approval. This certificate must confirm compliance with the insurance requirements, provide at least thirty days' prior written notice to Apricot Lane before any policy cancellation or alteration, and reflect proof of premium payment. Apricot Lane retains the right to modify the required insurance specifications as deemed necessary, with changes communicated in writing or through updates to the Confidential Operations Manual.