What is the minimum limit for all-risk property insurance that a Cinch I.T. franchisee must maintain?
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 all-risk property insurance. This insurance covers loss or damage to the business and personal property associated with the Cinch I.T. franchised business.
The minimum coverage amount must not be less than the replacement cost of the property. However, the FDD specifies an absolute minimum limit of $2,500.00, with a $1,000.00 deductible. This means that even if the replacement cost of the property is lower, the franchisee must still maintain at least $2,500.00 in coverage.
Cinch I.T. also reserves the right to increase the minimum limits or change the types of required coverage in the Operations Manual. Franchisees must provide certificates of insurance to Cinch I.T. at least 10 days before opening their franchise and annually thereafter, with a 30-day notice of cancellation or material alteration. Failure to maintain the required insurance constitutes a material breach of the Franchise Agreement, potentially allowing Cinch I.T. to procure insurance on the franchisee's behalf and charge the franchisee for the costs.