Is a Cinnaholic franchisee required to carry comprehensive crime and blanket employee dishonesty insurance?

According to Cinnaholic's 2025 Franchise Disclosure Document, franchisees are required to carry adequate limits for comprehensive crime and blanket employee dishonesty insurance. This insurance coverage is in addition to other required policies, such as Commercial General Liability Insurance with specific coverage amounts for various liabilities, automobile liability coverage, excess liability umbrella coverage, and worker's compensation insurance. Cinnaholic also requires franchisees to carry business interruption and extra expense insurance for a minimum of six months to cover net profits and continuing expenses, including Royalty Fees.

The requirement to maintain comprehensive crime and blanket employee dishonesty insurance means that Cinnaholic franchisees must protect their business against losses resulting from criminal activities, including employee dishonesty. This type of insurance typically covers losses due to theft, fraud, forgery, and other dishonest acts committed by employees. The specific coverage limits and terms of the policy will need to be adequate to protect the franchisee's assets and financial interests.

The FDD also notes that franchisees may desire to obtain greater coverages than the minimum requirements. The cost of insurance will vary depending on the insurance carriers' charges, the terms of payment, and the franchisee's insurance history. Therefore, it is important for prospective Cinnaholic franchisees to consult with an insurance professional to determine the appropriate level of coverage for their specific circumstances and to obtain quotes from multiple insurance carriers to ensure they are getting the best possible rates.