What is the minimum coverage limit for fire damage 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
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. This insurance must include coverage for fire damage, among other things. The minimum coverage limit for fire damage is $300,000 for one fire.
In addition to fire damage, the Commercial General Liability Insurance must include coverages for products-completed operations, contractual liability, personal and advertising injury, medical expenses, and dram shop/liquor liability. The policy must have 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. The medical expense coverage must have a limit of not less than $5,000 for one person.
Cinnaholic franchisees are also required to obtain and maintain other types of insurance, including non-owned automobile liability insurance with a combined single limit of $1,000,000 per occurrence. If the 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 is required. Franchisees must also carry 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 coverages must be on an occurrence basis and provide for waivers of subrogation. Franchisees must also carry worker's compensation insurance, comprehensive crime and blanket employee dishonesty insurance, and business interruption and extra expense insurance for a minimum of six months to cover net profits and continuing expenses, including Royalty Fees.
Prospective Cinnaholic franchisees should carefully review the insurance requirements outlined in the Franchise Agreement and consult with an insurance professional to ensure they obtain adequate coverage. The cost of insurance will vary depending on factors such as the insurance carrier's charges, the terms of payment, and the franchisee's insurance history. Franchisees may also desire to obtain greater coverages than the minimum requirements.