What are the minimum amounts of insurance coverage that Auntie Annes specifies franchisees must maintain?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
We require you to purchase and maintain specific types of insurance coverage as described in more detail in the Franchise Agreement and the Manuals from insurance companies that meet our minimum standards. We also specify the minimum amounts of insurance coverage you must maintain. All insurance policies must name us and others we designate as additional insureds. You must provide us with evidence of your insurance coverage before you begin operations at your Shop, upon annual renewal of your insurance, and otherwise within 10 days of our demand for proof. We reserve the right to obtain a master insurance policy on behalf of the System for certain types of coverage and require you to pay all or a portion of your proportionate share of coverage under the master policy to us or our Approved Supplier.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 54–59)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, franchisees are required to purchase and maintain specific types of insurance coverage from insurance companies that meet Auntie Annes's minimum standards. The FDD specifies that Auntie Annes also dictates the minimum amounts of insurance coverage franchisees must maintain.
All insurance policies must name Auntie Annes and any other parties they designate as additional insureds. Franchisees must provide evidence of their insurance coverage before beginning operations at their shop, upon annual renewal of their insurance, and within 10 days of Auntie Annes's demand for proof.
Auntie Annes retains the right to obtain a master insurance policy on behalf of the entire system for certain types of coverage. If they do so, franchisees may be required to pay all or a portion of their proportionate share of coverage under the master policy to Auntie Annes or their approved supplier. Because the specific types and minimum amounts of coverage are not listed in the FDD, prospective franchisees should inquire directly with the franchisor to understand the full scope of these insurance requirements and associated costs.