Is General Liability Umbrella insurance required for a City Wide franchise, and under what conditions?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
nnualized basis with the Support Center, ahead of coverage renewal)
Recommended (required if client requires it):
- General Liability Umbrella $5,000,000 (recommended, required if client requires it)
- Employee Honesty Bond $50,000 (recommended, required if client requires it)
- Errors and Omissions insurance (recommended)
If you provide service to a National Account, you must carry the types and coverages of insurance required by each National Account Contract and you are solely responsible to ensure that any subcontractors
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 24–28)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, General Liability Umbrella insurance is not strictly required for all franchisees. However, it is recommended with a coverage amount of $5,000,000. The document specifies that this insurance becomes mandatory if a client requires it.
This condition means that a City Wide franchisee's insurance needs can vary depending on the specific contracts they secure. If a franchisee intends to pursue larger clients, particularly those involved in National Accounts, they should anticipate the potential need for this additional layer of insurance coverage. The franchisee is solely responsible for ensuring that any subcontractors they use to perform the services to a National Account also carries the required types and coverages of insurance.
Prospective franchisees should factor in the cost of this insurance when evaluating the financial viability of the franchise, especially if their business plan involves targeting clients who are likely to mandate it. Additionally, franchisees should clarify with City Wide what documentation or proof of insurance is required from subcontractors to ensure compliance with National Account contracts.