How much notice must an insurance carrier provide to Cinnabon before canceling or modifying a franchisee's policy for non-payment of premiums?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
y way by reason of any insurance that we may maintain, nor will it relieve you of your indemnity obligations stated in Section 13.1 (Indemnification). 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 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. 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.
- 13.3 Carrier; Proof of Insurance. All insurance policies required under this Agreement: (i) must be issued by an insurance carrier authoriz
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, any insurance policies that a franchisee obtains must stipulate that the insurer will deliver written notice to Cinnabon 30 days before any cancellation or modification of the policy. However, if the cancellation or modification is due to non-payment of premiums, the insurer is only required to provide 10 days' written notice to Cinnabon.
This requirement ensures that Cinnabon is promptly informed of any potential lapse in a franchisee's insurance coverage, allowing them to take necessary actions to protect their interests and maintain compliance within the franchise system. The shorter notice period for non-payment reflects the urgency associated with such situations, as failure to pay premiums can quickly lead to policy cancellation.
For a prospective Cinnabon franchisee, this means ensuring that their insurance policies meet this notification requirement. This may involve confirming with the insurance carrier that the policy includes a stipulation to provide Cinnabon with the specified notice periods for cancellation or modification. Franchisees must also maintain timely premium payments to avoid the risk of a shorter notice period being triggered, which could lead to a swift cancellation of their insurance coverage.