What is the minimum amount of excess liability umbrella coverage required for Cinnaholic general liability and automobile liability coverages?
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
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 certain insurance coverages, including excess liability umbrella coverage. Specifically, Cinnaholic requires franchisees to secure excess liability umbrella coverage for their general liability and automobile liability, with a minimum of $2,000,000 per occurrence and aggregate.
This umbrella policy sits on top of the franchisee's general liability and automobile liability coverages, providing an extra layer of financial protection in the event of a large claim or lawsuit. The general liability coverage must have a combined single limit of $1,000,000 per occurrence and $2,000,000 in the aggregate, while automobile liability coverage for owned, non-owned, scheduled, and hired vehicles must have a combined single limit of $1,000,000 per occurrence.
For a prospective Cinnaholic franchisee, this means factoring in the cost of securing this level of insurance coverage. Insurance costs can vary based on factors like the franchisee's location, insurance history, and the specific insurance carrier. It is advisable to consult with an insurance professional to obtain quotes and ensure adequate coverage to meet Cinnaholic's requirements and protect the business from potential liabilities.