What are the minimum coverage limits for the Comprehensive General Liability Insurance, including Products & Completed Operations coverage, that Auntie Annes franchisees must maintain?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
igation):**
Your Local Marketing Obligation shall be equal to 1% of the Net Sales of your Franchised Business per calendar quarter. We may change the Local Marketing Obligation in our sole discretion, provided that the required Advertising Contribution and Local Marketing Obligation shall not ex
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, franchisees must maintain Comprehensive General Liability Insurance, including Products & Completed Operations coverage. The minimum coverage required is $1,000,000 per occurrence and $2,000,000 in the aggregate. Additionally, the policy can have a maximum deductible of $5,000 per occurrence.
This insurance protects Auntie Annes franchisees from financial losses due to various liabilities, such as customer injuries or property damage that may occur at the franchise location. The Products & Completed Operations coverage specifically addresses liabilities arising from the products sold and the services provided by the franchise.
The specified coverage limits ensure that franchisees have sufficient financial resources to cover potential claims. The deductible amount represents the portion of a covered loss that the franchisee must pay out-of-pocket before the insurance coverage kicks in. Franchisees should factor in the cost of this insurance, including premiums and potential deductibles, when assessing the overall financial investment required to start and operate an Auntie Annes franchise.