Is the Cinch I.T. franchisee responsible for maintaining insurance on all insurable properties?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
any of Your employees and incur any liability as a joint employer, You must indemnify 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 insurance on all insurable properties. Specifically, Cinch I.T. mandates that franchisees maintain all-risk property insurance against loss or damage to business and personal property.
The required insurance coverage must be no less than the replacement cost of the property, with a minimum limit of $2,500.00 and a deductible of $1,000.00. This ensures that franchisees have adequate financial protection in case of unforeseen events that could damage or destroy their business assets.
This requirement is typical in franchising, as franchisors want to protect the brand and ensure business continuity across all locations. By setting minimum insurance standards, Cinch I.T. aims to safeguard both the franchisee's investment and the overall stability of the franchise system. Franchisees should factor these insurance costs into their initial and ongoing operating expenses.