What is the minimum limit required for the 'umbrella' policy providing excess coverage for automobile liability, general liability, and employers liability policies 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 $1,000,
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 are required to maintain an 'umbrella' policy providing excess coverage for automobile liability, general liability, and employers liability policies. The minimum limit for this umbrella policy must not be less than $1,000,000. This policy serves as an extra layer of protection beyond the limits of the standard automobile, general, and employer liability policies.
This requirement ensures that Cicis franchisees have sufficient financial resources to cover potential liabilities arising from their business operations. By mandating a minimum coverage limit of $1,000,000, Cicis aims to protect both the franchisee and the brand from significant financial losses due to lawsuits or claims. Franchisees must secure this insurance coverage before opening their Cicis restaurant and maintain it throughout the term of their Franchise Agreement.
It is important for prospective franchisees to factor in the cost of this insurance coverage when evaluating the overall investment required to start and operate a Cicis franchise. The FDD also states that Cicis may change the types of insurance and coverage amounts required at their sole discretion. Franchisees should also confirm that their insurance policies name Cicis, its affiliates, and their respective officers, directors, shareholders, partners, agents, representatives, and employees as additional insureds and include a waiver of subrogation in favor of all those parties. Policies must also provide the additional insureds a 30-day advance notice in the event of policy cancellation.