What is the minimum amount of Umbrella or Excess Insurance a Circle K franchisee must procure?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
or leased by Franchisee or used by Franchisee or any of its employees or agents in connection with the Franchised Business. Minimum limits for these coverages will be One Million Dollars ($1,000,000) for bodily injury and p
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, franchisees are required to maintain Umbrella or Excess Insurance. The minimum coverage amount for this insurance is $1,000,000. This insurance is intended to provide an extra layer of protection beyond the standard liability coverage.
This requirement means that a prospective Circle K franchisee will need to factor in the cost of this insurance policy when calculating their initial investment and ongoing operating expenses. Failing to maintain the required insurance coverage could result in a breach of the franchise agreement.
Umbrella or Excess Insurance acts as a safety net, providing additional financial protection in the event of a catastrophic claim or lawsuit. This type of insurance is common in the franchise industry, particularly for businesses like Circle K that have significant public interaction and potential liability exposure.