What is the deadline for Cinnaholic franchisees to submit insurance certificates upon annual renewal?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall deliver to Franchisor certificates of insurance evidencing the proper coverage with limits not less than those required hereunder, and all such certificates shall expressly contain endorsements requiring the insurance company to give Franchisor at least 30 days written notice in the event of material alteration to termination, non-renewal, or cancellation of, the coverages evidenced by such certificates and notice of any claim filed under such policy within 30 days after the filing of such claim.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, franchisees must provide certificates of insurance to Cinnaholic at least 30 days before their insurance policy expires. These certificates serve as proof that the franchisee has the required insurance coverage in place.
This requirement ensures that Cinnaholic is protected by maintaining continuous insurance coverage for each franchise location. The certificates must also include endorsements that obligate the insurance company to notify Cinnaholic at least 30 days in advance of any material changes, termination, non-renewal, or cancellation of the insurance coverage. Additionally, Cinnaholic must be notified of any claim filed under the policy within 30 days of the claim.
Cinnaholic retains the right to modify the minimum insurance limits and types of coverage required. If a franchisee fails to maintain the required insurance or provide proof of coverage, Cinnaholic has the option to obtain the insurance on the franchisee's behalf, and the franchisee is responsible for reimbursing Cinnaholic for the premiums paid. This underscores the importance of franchisees adhering to the insurance requirements to avoid potential disruptions and additional costs.