What is the required notice period Cicis franchisees must provide for material modification, cancellation, or expiration of insurance policies?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
All insurance policies for liability coverage must name us and any affiliates we designate as additional named insureds, using a form of endorsement that we have approved, and provide for 30 days' prior written notice to us of a policy's material modification, cancellation or expiration. You routinely must furnish us copies of your certificate of insurance or other evidence of your maintaining this insurance coverage and paying premiums.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to the 2025 Cicis Franchise Disclosure Document, Cicis franchisees must provide 30 days' prior written notice to Cicis in the event of a material modification, cancellation, or expiration of their insurance policies. This requirement ensures that Cicis is informed of any changes to the franchisee's insurance coverage, allowing them to take necessary steps to protect their interests.
This notification period is a standard practice in franchising, as it allows the franchisor to verify that adequate insurance coverage is maintained. The insurance policies for liability coverage must name Cicis and any affiliates they designate as additional named insureds, using a form of endorsement that Cicis has approved.
Furthermore, Cicis has the right to modify the required amounts of coverage or require different or additional insurance coverages at any time to reflect inflation, identification of new risks, changes in the Laws or liability, higher damage awards or other relevant changes in circumstances. Franchisees are also routinely required to furnish Cicis with copies of their certificate of insurance or other evidence of maintaining insurance coverage and paying premiums.