What specific coverages must be included in the Commercial General Liability Insurance for a Cinnaholic franchise?
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 Commercial General Liability Insurance during the term of their Franchise Agreement. 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 required Commercial General Liability Insurance 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. There are exceptions for fire damage and medical expense coverages, which may have different limits, but not less than $300,000 for one fire and $5,000 for one person, respectively.
In addition to the above, Cinnaholic franchisees must also secure non-owned automobile liability insurance. If the franchisee owns, rents, or identifies any vehicles with any Mark or vehicles used in connection with the operation of the Bakery, they need automobile liability coverage for owned, non-owned, scheduled, and hired vehicles with a combined single limit of $1,000,000 per occurrence. 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.