What is the minimum aggregate limit required for Cinnaholic Commercial General Liability Insurance?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
unt of the full insurable value of such property. You agree to carry Commercial General Liability Insurance, including coverages for products-completed operations, contractual liability, personal and advertising injury, fire damage, medical expenses, and dram shop/liquor liability, having a combined single limit for bodily injury and property damage of $1,000,000 per occurrence and $2,000,000 in the aggregate (except for fire damage and medical expense coverages, which may have different limits of not less than $300,000 for one fire and $5,000 for one person, respectively); plus (ii) non-owned automobile liability insurance and, if Franchisee owns, rents or identifies any vehicles with any Mark or vehicles are used in connection with the operation of the Bakery, automobile liability coverage for owned, non-owned, scheduled and hired vehicles having a combined single limit of $1,000,000 per occurrence; plus (iii) excess liability umbrella coverage for the general liability and automobile liability coverages in an amount of not less than $2,000,000 per occurrence and aggregate. All such coverages shall be on an occurrence basis and shall provide for waivers of subrogation. You agree to carry Workers' compensation insurance, or a similar policy if the Bakery is located in a non-subscriber state, covering all of its employees as is required by law. You agree to carry adequate limits for comprehensive crime and blanket employee dishonesty insurance. Finally you agree to carry business interruption and extra expense insurance for a minimum of six months to cover net profits and continuing expenses (including Royalty Fees). You may desire to obtain greater coverages. The cost of your insurance will vary depending on the insurance carriers' charges,
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 must maintain Commercial General Liability Insurance with specific coverage limits. This insurance must include coverage for products-completed operations, contractual liability, personal and advertising injury, fire damage, medical expenses, and dram shop/liquor liability. The combined single limit for bodily injury and property damage must be $1,000,000 per occurrence and $2,000,000 in the aggregate. However, fire damage and medical expense coverages may have different limits, provided they are not less than $300,000 for one fire and $5,000 for one person, respectively.
In addition to the general liability coverage, Cinnaholic franchisees are required to have non-owned automobile liability insurance. If the franchisee owns, rents, or identifies any vehicles with any Mark or vehicles are used in connection with the operation of the Bakery, they must also carry automobile liability coverage for owned, non-owned, scheduled, and hired vehicles. This automobile liability coverage must have a combined single limit of $1,000,000 per occurrence. Furthermore, franchisees must secure excess liability umbrella coverage for both the general liability and automobile liability coverages, with a minimum of $2,000,000 per occurrence and aggregate.
All insurance coverages must be on an occurrence basis and provide for waivers of subrogation. Franchisees are also required to carry workers' compensation insurance, or a similar policy if the Bakery is located in a non-subscriber state, covering all employees as required by law. Adequate limits for comprehensive crime and blanket employee dishonesty insurance are also mandatory. Lastly, franchisees must maintain business interruption and extra expense insurance for a minimum of six months to cover net profits and continuing expenses, including Royalty Fees. While these are the minimum required coverages, the FDD notes that franchisees may desire to obtain greater coverages, and the cost of insurance will vary based on factors such as the insurance carriers' charges, terms of payment, and the franchisee's insurance history.