What is the minimum combined single limit required for automobile liability coverage for a Cicis restaurant?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
operating your Cicis Restaurant.
Insurance: Before your Cicis Restaurant opens for business and throughout its operation, you must secure and maintain the insurance coverage required by us, which includes the following:
- (1) Commercial General Liability Insurance, personal injury, advertising injury, completed operations, products liability, and fire damage coverage, in the amount of $
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 25–28)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, franchisees must maintain automobile liability coverage with a minimum combined single limit of $1,000,000. This coverage must include owned, non-owned, and hired vehicles.
This requirement means that a Cicis franchisee needs to secure an insurance policy that covers potential liabilities arising from the use of vehicles in their business operations. The $1,000,000 combined single limit represents the total amount the insurance company will pay for bodily injury and property damage resulting from a single accident, regardless of the number of claimants. This is a fairly standard requirement in the franchise industry, especially for businesses that involve delivery services or frequent use of vehicles.
It is important for prospective Cicis franchisees to factor in the cost of this insurance coverage when evaluating the financial feasibility of the franchise. They should also ensure that the insurance policy meets all the specific requirements outlined in the Franchise Agreement, including the types of vehicles covered and any additional endorsements or provisions required by Cicis. Failing to maintain adequate insurance coverage could result in a breach of the Franchise Agreement and potential legal and financial liabilities for the franchisee.