What is the minimum coverage required for crime insurance for a Chatime franchise?
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 crime insurance with a minimum coverage of $100,000 for each claim. This insurance coverage is one of several that Chatime mandates franchisees carry to protect the business and brand.
In practical terms, this means a prospective Chatime franchisee must secure a crime insurance policy that covers at least $100,000 per incident. This coverage is intended to protect against losses resulting from criminal activities such as theft, embezzlement, or fraud that could occur at the franchise location. The franchisee is responsible for the premiums associated with this insurance, and the cost will vary based on the insurance carrier's rates, payment terms, and the franchisee's history.
Chatime also requires that it and its affiliates be named as an additional insured party on all insurance policies. This requirement protects Chatime from potential liabilities and ensures that the franchisor has a vested interest in the franchisee maintaining adequate coverage. Franchisees should factor the cost of this insurance into their overall investment and operating expenses when considering a Chatime franchise.