What is the minimum aggregate coverage required for Comprehensive General Liability Insurance for a Circle K Branded Business?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
franchises) based on your purchase of particular products or services or use of particular suppliers.
The Branding Agreement requires you to maintain certain types and minimum amounts of insurance coverage for your Branded Business. You must maintain: (i) Comprehensive General Liability Insurance covering the Branded Business premises, all operations at the premises, products completed operations liability, products liability, contractual liability, fire, explosion and collapse liability, as well as coverage on all contractor's equipment (other than motor vehicles licensed for highway use) owned, hired, or used in connection with the Branded Business, bodily injury, and property damage, with mini
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 45–52)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, franchisees operating a Branded Business must maintain Comprehensive General Liability Insurance. This insurance covers the business premises, all operations, product liability, contractual liability, and other potential liabilities. The minimum required coverage is $1,000,000 per occurrence, with an aggregate coverage of no less than $2,000,000. This requirement ensures that Circle K franchisees have sufficient financial protection against potential lawsuits or claims arising from their business operations.
For franchisees operating a Motor Fuel Business, the insurance requirements are similar. They must also maintain Comprehensive General Liability Insurance with the same minimum limits of $1,000,000 per occurrence and an aggregate coverage of no less than $2,000,000. Additionally, if the Motor Fuel Business includes a service bay or car wash, Legal Liability Insurance with a minimum limit of $500,000 per occurrence and a general aggregate amount of no less than $1,000,000 is required. Automobile Liability Insurance with a combined single limit of not less than $1,000,000 per occurrence is also mandated.
For a Convenience Store Franchise Agreement, Circle K requires franchisees to maintain Commercial General Liability Coverage with minimum limits of $1,000,000 per occurrence and $2,000,000 aggregate limit. Additionally, Liquor Liability with minimum limits of $1,000,000 per occurrence and $2,000,000 aggregate limit, and Automobile Liability Coverage with minimum limits of $1,000,000 per occurrence are required. These insurance requirements are in place to protect both the franchisee and Circle K from potential financial losses due to accidents, injuries, or other liabilities.