What are the minimum coverage limits for Employment Practices Liability insurance, including third-party coverage, that Auntie Annes franchisees must maintain?

According to Auntie Annes's 2024 Franchise Disclosure Document, franchisees must maintain Employment Practices Liability insurance, including third-party coverage. The minimum coverage required is $1,000,000 per employee and $1,000,000 per accident.

This insurance protects Auntie Annes franchisees from claims related to employment practices such as discrimination, wrongful termination, and harassment. The inclusion of third-party coverage extends this protection to claims made by individuals who are not directly employed by the franchisee, such as customers or vendors.

The specific coverage limits are set to provide a financial safety net for potential legal liabilities arising from employment-related issues. Franchisees should consult with their insurance providers to ensure that their policies meet these minimum requirements and adequately protect their business from potential risks. Additionally, if a franchisee opts for a claims-made policy, they must secure tail coverage for at least one year following the termination or expiration of the Franchise Agreement or the closure of the franchised business, with coverage limits equal to or exceeding those of the prior policy.