What is the minimum limit required for the 'umbrella' policy providing excess 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 $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 employer's liability. The minimum limit for this umbrella policy must be no less than $1,000,000. This policy serves as an extra layer of protection above the other liability policies, kicking in when those limits are exhausted.
This requirement ensures that Cicis franchisees have significant financial protection against large claims or lawsuits. The umbrella policy covers exposures related to automobile accidents, general incidents on the premises, and potential employer liabilities. By setting a minimum limit of $1,000,000, Cicis aims to mitigate the financial risk to both the franchisee and the brand in the event of a major incident.
Franchisees must secure and maintain this insurance coverage before opening their Cicis restaurant and throughout its operation. Failure to maintain the required insurance coverage could result in a breach of the Franchise Agreement. It is important for prospective franchisees to factor in the cost of this insurance, along with other required policies, when assessing the overall investment and operating expenses of a Cicis franchise.