What is the minimum amount of excess liability umbrella coverage required for Cinnaholic franchisees?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
ms of any lease for the Franchised Site or, if there is no such lease, Franchisee agrees 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.
- (ii) Commercial General Liability Insurance, including coverages for productscompleted 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, s
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, franchisees must maintain excess liability umbrella coverage for general and automobile liability. This coverage must be in an amount of not less than $2,000,000 per occurrence and in the aggregate.
This insurance coverage is in addition to other required insurance policies, such as commercial general liability insurance and automobile liability coverage, each with its own specified limits. The excess liability umbrella policy provides an extra layer of protection above these primary policies, which can be crucial in the event of a significant claim or lawsuit.
Cinnaholic also requires that the franchisor is named as an additional insured on all insurance policies. Franchisees must provide certificates of insurance to Cinnaholic before opening their bakery and at least 30 days before the expiration of any policy. These certificates must include endorsements requiring the insurance company to notify Cinnaholic at least 30 days in advance of any material changes, termination, non-renewal, or cancellation of the coverage. They must also provide notice of any claim filed under such policy within 30 days after the filing of such claim.
Cinnaholic retains the right to increase or change the minimum limits and types of insurance coverage required at any time during the term of the Franchise Agreement. If a franchisee fails to maintain the required insurance coverage, Cinnaholic has the option to obtain the coverage on the franchisee's behalf, and the franchisee must reimburse Cinnaholic for the premiums.