What is the minimum amount of cargo insurance required for an Aunt Millies Bakeries distributor?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
used in Borrower's business;
In the event a substitute vehicle is used by Borrower coverage must automatically apply to the substitute vehicle. In addition, the Distributor must carry policies or riders providing cargo insurance in an amount of not less than $2,000, and Inland Marine coverage of not less than $5,000. In the event equipment to be insured exceeds the value of $5,000.00, additional Inland Marine coverage m
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, a distributor must maintain cargo insurance of at least $2,000. Additionally, the distributor is required to have Inland Marine coverage of no less than $5,000. If the equipment to be insured exceeds $5,000 in value, the distributor must purchase additional Inland Marine coverage.
This requirement ensures that the Aunt Millies Bakeries distributor has adequate financial protection in case of damage or loss to the products during transit. It also protects Aunt Millie's Bakeries by ensuring there is coverage for potential losses. The insurance policy must be acceptable to any secured party and name them as an additional insured.
It is important for prospective Aunt Millies Bakeries franchisees to factor in the cost of these insurance policies when evaluating the overall investment and operating expenses of the franchise. They should also discuss with the franchisor or existing franchisees to understand the typical costs and coverage levels required to operate the distribution business effectively.