What is the minimum combined single limit for franchisee commercial auto insurance required by Chatime?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
ier directly or to us if so
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- (10) Insurance. We currently require that you maintain the following insurance coverages: A) general liability coverage with minimums of $1 million per occurrence, $2 million general and products/completed operations aggregate, $1 million personal/advertising injury, $50,000 rented premises damage, and $5,000 medical expenses; B) franchisee commercial auto insurance with a $1 million combined single limit; C) workers compensation insurance with coverage limits of $1 million for bodily injury by disease per accident, $1 million policy limit, and $1 million per employee, regardless of state laws and cannot exclude owner-operators; D) property/business interruption coverage business personal property, tenant improvements, equipment, business interruption, and franchisor royalties, for a minimum of 12 months' actual loss sustained; E) cyber liability insurance with minimum coverage limits of $250,000 per occurrence and $250,000 aggregate; F) employment practices liability insurance with minimum coverage limits of $500,000 per occurrence and $500,000 aggregate, which includes third party liability and wage & hour coverage of at least $25,000, with a maximum deductible that does not exceed $25,000; G) crime insurance with a minimum coverage of $100,000 for each claim. We recommend that you maintain build-out insurance coverage. You must also maintain workers' compensation insurance coverage for your employees during training. Premium
Source: Item 7 — Estimated Initial Investment (FDD pages 17–22)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, franchisees are required to maintain commercial auto insurance with a minimum combined single limit of $1 million. This insurance coverage is one of several that Chatime mandates to protect the business and brand.
In practical terms, this means a prospective Chatime franchisee must secure an insurance policy that covers at least $1 million in damages for any single accident involving a company vehicle. This requirement helps protect both the franchisee and Chatime from significant financial losses due to potential liabilities arising from vehicle accidents. The franchisee is responsible for paying the premiums to the insurance provider.
Besides commercial auto insurance, Chatime also requires franchisees to maintain other insurance coverages, including general liability, workers compensation, property/business interruption, cyber liability, employment practices liability, and crime insurance. These requirements collectively ensure that franchisees have a comprehensive risk management strategy in place, which is a common practice in the franchise industry to safeguard the brand and its operators.