Is a Cinnaholic franchisee required to obtain insurance coverage?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
by us as the Operations Manual or the Manual). Insurance. You must obtain and maintain, at your own expense, the insurance coverage we require, and you must meet the other insurance-related obligations in the Franchise Agreement. Such insurance as may be required by the terms of any lease for the Franchised Site or, if there is no such lease, You agree to carry fire and extended coverage insurance covering the building and all equipment, supplies, products, inventory, furniture, fixtures and other tangible property located in the Bakery or on the Franchised Site in the amount of the full insurable value of such property.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 21–25)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, franchisees are required to obtain and maintain insurance coverage. Cinnaholic mandates that franchisees meet specific insurance-related obligations as outlined in the Franchise Agreement.
The required insurance includes fire and extended coverage for the building, equipment, supplies, products, inventory, furniture, fixtures, and other tangible property at the franchised site, covering the full insurable value of the property. Additionally, franchisees must obtain and maintain other insurance coverage that Cinnaholic requires.
Cinnaholic franchisees must obtain and maintain the insurance coverage that Cinnaholic requires at their own expense. The cost of insurance will vary depending on the insurance carrier's charges, the terms of payment, and the franchisee's insurance history. While franchisees must obtain the minimum required coverage, they may desire to obtain greater coverage.