Can Cinnabon modify the mandatory insurance coverages required of franchisees?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
We may from time to time increase, decrease, add to, delete from, or modify the mandatory insurance coverages we require in accordance with reasonable and customary changes in the industry, as we determine.
You currently must obtain and maintain the coverage specified in Schedule A.
These policies are required to respond on a primary and non-contributory basis to any insurance carried by us or our affiliates and may not otherwise limit coverage for tort liabilities assumed in this Agreement.
We reserve the right to obtain a master insurance policy on behalf of the System for certain types of coverage and require you to pay all or a portion of your proportionate share of coverage under the master policy to us or our Approved Supplier.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, Cinnabon has the right to modify the mandatory insurance coverages required of its franchisees. Cinnabon may increase, decrease, add to, or delete from the mandatory insurance coverages. These changes will be in accordance with reasonable and customary changes in the industry, as determined by Cinnabon.
Currently, franchisees must obtain and maintain the coverage specified in Schedule A of the Franchise Agreement. These insurance policies must respond on a primary and non-contributory basis to any insurance carried by Cinnabon or its affiliates. The policies also cannot limit coverage for tort liabilities assumed in the Franchise Agreement.
Cinnabon also reserves the right to obtain a master insurance policy on behalf of the entire Cinnabon system for certain types of coverage. If Cinnabon exercises this right, franchisees will be required to pay their proportionate share of the coverage under the master policy to Cinnabon or its Approved Supplier. This means that a Cinnabon franchisee should be prepared for potential changes in required insurance coverage and the possibility of participating in a master insurance policy managed by Cinnabon.