What are the minimum coverage limits for the Comprehensive General Liability Insurance, including Products & Completed Operations coverage, that a Cinnabon franchisee must maintain?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
dar quarter. We may change the Local Marketing Obligation in our sole discretion, provided that the required Advertising Contribution and Local Marketing Obligation shall not exceed 5% of the Net Sales of your Franchised Business.
15. Section 11.1.C. (Attending Training):
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Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, franchisees are required to maintain Comprehensive General Liability Insurance, including Products & Completed Operations coverage. This insurance must have a minimum limit of $1,000,000 per occurrence and $2,000,000 in the aggregate. Additionally, the policy can have a maximum deductible of $5,000 per occurrence.
This requirement ensures that Cinnabon franchisees have adequate financial protection against potential liabilities arising from their business operations. The Products & Completed Operations coverage specifically protects against claims related to the Cinnabon products sold and any issues arising after the completion of a service. The specified coverage limits and deductible amount are designed to balance risk management with affordability for the franchisee.
It is important for prospective Cinnabon franchisees to factor in the cost of this insurance coverage when evaluating the overall investment required to start and operate a franchise. They should also consult with insurance professionals to understand the specific coverage options available and to ensure they meet Cinnabon's requirements. Failing to maintain the required insurance could result in the franchisor procuring insurance on behalf of the franchisee, potentially at a higher cost, or other penalties as outlined in the franchise agreement.