What section of the Cicis Franchise Disclosure Document outlines the requirements for procuring and maintaining insurance?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
11. INSURANCE
- A. Procuring and Maintaining Insurance. During the Term you must, at your expense, maintain in force at least the following insurance coverages:
- (1) Commercial General Liability Insurance, personal injury, advertising injury, completed operations, products liability, and fire damage coverage, in the amount of $1,000,000 per occurrence limit with a $2,000,000 general aggregate and a $2,000,000 product aggregate limit; fire legal liability of $50,000, and a premises medical limit of $2,500.
- (2) "All Risks" coverage for the full cost of replacement of your Restaurant premises and all other property in which we may have an interest and business income insurance in an amount sufficient to cover continuing obligations to us in the event of a covered loss.
- (3) Automobile liability coverage, including coverage of owned, non-owned, and hired vehicles, with coverage in amounts not less than $1,000,000 combined single limit.
- (4) An "umbrella" policy providing excess coverage of the automobile liability, general liability, and employers liability policies with limits of not less than $1,000,000.
- (5) Worker's compensation insurance to provide statutory coverage in the applicable state, and employers liability coverage with limits of $500,000/$500,000/$500,000 or, if permissible under applicable law, any legally appropriate alternative, provided that you (i) maintain an excess indemnity or "umbrella" policy covering employer's liability and a medical/disability policy covering medical expenses for on-the-job accidents, which policy or policies will be written by a responsible carrier meeting the requirements set forth above and which will contain such coverage amounts as you and we mutually agree upon and (ii) conduct and maintain a risk management and safety program for your employees that you and we mutually agree is appropriate.
- (6) Cyber insurance policy with a coverage of $500,000 per occurrence and $500,000 in aggregate.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, Item 22, titled "CONTRACTS", outlines the requirements for procuring and maintaining insurance. Specifically, section 11A details the types and amounts of insurance coverage a franchisee must maintain during the term of the agreement.
The required insurance coverages include Commercial General Liability Insurance with a $1,000,000 per occurrence limit and aggregate limits of $2,000,000, "All Risks" coverage for the full replacement cost of the Restaurant premises, automobile liability coverage with a combined single limit of $1,000,000, and an umbrella policy providing excess coverage of $1,000,000. Additionally, franchisees must maintain worker's compensation insurance and a cyber insurance policy with a coverage of $500,000 per occurrence and $500,000 in aggregate.
Cicis also specifies that franchisees must comply with all System Standards, which may regulate the types, amounts, terms, and conditions of insurance coverage required for the Restaurant, including criteria for insurance carriers. This allows Cicis to modify insurance requirements periodically. Franchisees are responsible for the day-to-day management and operation of their Restaurant, including implementing and maintaining these System Standards.