What is the minimum combined single limit required for Chatime franchisee commercial auto insurance?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
or modify this list as we deem appropriate.
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; and G) crime insurance with a
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 22–25)
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 for its franchisees to ensure adequate protection against potential liabilities.
In practical terms, this means a prospective Chatime franchisee must secure a commercial auto insurance policy that provides at least $1 million in coverage for any single accident involving a vehicle used in the business. This coverage can protect the franchisee from significant financial losses in the event of an accident that causes bodily injury or property damage to others. The franchisee is responsible for the insurance premiums, and these costs will vary based on the insurance carrier's rates, payment terms, and the franchisee's driving history.
It is important to note that Chatime and its affiliates must be named as an additional insured party on all insurance policies. This requirement protects Chatime from potential liabilities arising from the franchisee's operations. Franchisees should factor in the cost of this insurance, along with other required coverages such as general liability, workers' compensation, and property/business interruption insurance, when assessing the overall financial investment required to open and operate a Chatime franchise.