What is the minimum combined single limit per occurrence required for Cinnaholic automobile liability coverage?
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 are required to maintain certain insurance coverages, including automobile liability coverage. Specifically, if a franchisee owns, rents, or identifies any vehicles with any Cinnaholic mark, or if vehicles are used in connection with the bakery's operation, they must have automobile liability coverage for owned, non-owned, scheduled, and hired vehicles. The minimum combined single limit for this coverage is $1,000,000 per occurrence.
This requirement ensures that Cinnaholic franchisees have adequate financial protection in the event of an automobile accident involving their business. The $1,000,000 limit covers both bodily injury and property damage, providing a safety net for potential liabilities arising from vehicle-related incidents. This coverage is a standard requirement in many franchise systems, as it protects both the franchisee and the franchisor from significant financial losses due to accidents.
In addition to the automobile liability coverage, Cinnaholic also requires franchisees to carry commercial general liability insurance with a $1,000,000 per occurrence limit and excess liability umbrella coverage of not less than $2,000,000 per occurrence and aggregate. These insurance requirements collectively aim to mitigate various risks associated with operating a Cinnaholic franchise, ensuring that franchisees are adequately insured against potential liabilities.