Under what conditions can Cicis change the required amounts of insurance coverage for franchisees?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge and agree that the above reflects our current requirement and we may periodically change the amounts of coverage required under these insurance policies or require different or additional insurance coverages (including reasonable excess liability insurance) 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. 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. If you fail or refuse to obtain and maintain the insurance we specify, in addition to our other remedies, we may (but need not) obtain such insurance for you and your Restaurant on your behalf, in which event you shall cooperate with us and reimburse us for all premiums, costs and expenses we incur in obtaining and maintaining the insurance, plus a reasonable fee for our time incurred in obtaining such insurance. Your obligation to maintain insurance coverage will not be limited in any respect by reason of insurance maintained by us or any other party. Additionally, no insurance coverage that you or any other party maintains will be deemed a substitute for your indemnification obligations to us or Affiliates under this Agreement or otherwise. All insurance policies must contain a "primary and noncontributory" provision in favor of additional insureds.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, Cicis can periodically change the required amounts of insurance coverage or require different or additional insurance coverages for several reasons. These reasons include reflecting inflation, identifying new risks, changes in laws or liability, higher damage awards, or other relevant changes in circumstances.
Cicis requires franchisees to maintain certain insurance policies, such as commercial general liability insurance, "all risks" coverage, automobile liability coverage, an "umbrella" policy, worker's compensation insurance, and cyber insurance. The commercial general liability insurance must have a coverage of $1,000,000 per occurrence limit with a $2,000,000 general aggregate and a $2,000,000 product aggregate limit. The cyber insurance policy must have a coverage of $500,000 per occurrence and $500,000 in aggregate.
All insurance policies for liability coverage must name Cicis and any designated affiliates as additional named insureds, using an approved form of endorsement. Franchisees must provide 30 days' prior written notice to Cicis of any material modification, cancellation, or expiration of a policy. Franchisees must also routinely furnish copies of their insurance certificates or other evidence of maintaining coverage and paying premiums. If a franchisee fails to maintain the specified insurance, Cicis has the option to obtain such insurance on the franchisee's behalf, and the franchisee must reimburse Cicis for all premiums, costs, and expenses incurred, plus a reasonable fee for Cicis's time.
It is the franchisee's responsibility to acquire any additional coverages they believe are necessary to protect their and their Restaurant's interests, based on their own independent investigation. Cicis's insurance requirements represent only the minimum coverage deemed acceptable to protect their interests and are not representations or warranties that such coverage is sufficient to protect the franchisee's interests or meet the requirements of applicable laws.