What are the minimum coverage limits per occurrence and in the aggregate for the Comprehensive General Liability Insurance that Auntie Annes franchisees must obtain?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
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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 are required to maintain Comprehensive General Liability Insurance. This insurance must include Products & Completed Operations coverage. The minimum coverage limits are $1,000,000 per occurrence and $2,000,000 in the aggregate.
This means that for any single incident, the insurance policy will cover up to $1,000,000 in damages. The aggregate limit of $2,000,000 represents the total amount the insurance policy will pay out for all claims during the policy term, which is typically one year.
Additionally, the policy may have a deductible, which is the amount the franchisee must pay out-of-pocket before the insurance coverage kicks in. For the Comprehensive General Liability Insurance, Auntie Annes specifies a maximum deductible of $5,000 per occurrence. Franchisees should factor in the cost of premiums and the potential deductible when budgeting for insurance expenses.