Can Auntie Annes require franchisees to obtain insurance with higher policy limits in the future?

According to Auntie Annes's 2024 Franchise Disclosure Document, Auntie Annes franchisees should be aware that their insurance costs may increase in the future. Auntie Annes retains the right to mandate that franchisees obtain insurance policies with higher coverage limits.

This means that while the initial investment estimates include insurance premiums for the first year based on current minimum requirements, these requirements are not fixed. Auntie Annes can change the minimum required coverage levels, which would likely result in higher premium costs for the franchisee.

As a prospective franchisee, it is important to factor in the potential for increased insurance expenses when assessing the financial viability of the franchise. It would be prudent to discuss with Auntie Annes the circumstances under which they might increase insurance requirements and to consult with an insurance broker to understand how such changes could impact premium costs.