What is the deductible amount for the all-risk property insurance that a Cinch I.T. franchisee must maintain?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
fy Us and make Us whole. This indemnity shall continue in full force and effect subsequent to and notwithstanding the expiration or termination of this Agreement or any renewal term.
- (b) You agree to maintain insurance, which are Our required minimums, as follows:
- (i) With respect to all insurable properties, You shall maintain or cause to be maintained, all-risk property insurance aga
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, franchisees are required to maintain all-risk property insurance. This insurance covers loss or damage to the business and personal property of the franchised business.
The minimum coverage amount must not be less than the replacement cost of the property. However, the policy must have at least a $2,500 limit and a $1,000 deductible. This means that in the event of a covered loss, the franchisee will be responsible for paying the first $1,000, and the insurance policy will cover the remaining amount up to the policy limit.
It is important for prospective Cinch I.T. franchisees to factor this deductible into their operating budget. They should also ensure that the replacement cost of their business and personal property is adequately covered by the insurance policy to avoid potential financial losses in the event of damage or loss.