What is the minimum coverage for each crime insurance claim that Chatime requires?
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 mini
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 crime insurance with a minimum coverage of $100,000 for each claim. This insurance coverage is part of a broader set of insurance requirements that Chatime mandates to protect the business, its employees, and the brand.
Crime insurance typically covers losses resulting from criminal activities such as theft, embezzlement, or fraud. The $100,000 minimum coverage suggests that Chatime recognizes the potential for such risks and aims to provide a financial safety net for franchisees in the event of a crime-related loss. Franchisees should understand the specific terms and conditions of the crime insurance policy to ensure it adequately addresses the potential risks in their particular location and business operations.
In addition to crime insurance, Chatime requires franchisees to maintain other insurance coverages, including general liability, commercial auto, workers compensation, property/business interruption, cyber liability, and employment practices liability insurance. These requirements collectively aim to mitigate various risks associated with operating a Chatime franchise and protect the interests of both the franchisee and the franchisor. Franchisees must factor in the cost of these insurance policies when assessing the overall financial investment required to start and operate a Chatime franchise.