What documentation must Cream franchisees routinely furnish to Cream as evidence of insurance coverage?

According to Cream's 2025 Franchise Disclosure Document, franchisees must routinely provide copies of their Certificates of Insurance or other evidence to prove they maintain the required insurance coverage and have paid the premiums.

Cream mandates that franchisees maintain specific types and amounts of insurance throughout the term of the franchise agreement, complying with lease terms. Cream retains the right to stipulate that franchisees obtain insurance policies from a designated supplier, adhering to approved terms and specifications. The liability insurance must cover claims related to bodily injury, death, and property damage resulting from the shop's operation or the activities of its personnel.

These insurance policies must meet minimum coverage requirements set by Cream and have deductibles not exceeding specified amounts. Cream can periodically increase coverage amounts or require different/additional insurance, including excess liability insurance. Policies must be purchased from licensed insurers with an "A/VIII" or higher rating by A.M. Best Company. Each liability policy must name Cream and its affiliates as additional insureds, provide 30 days' prior written notice of material changes, cancellation, or expiration, and include a waiver of subrogation rights against Cream and its affiliates.

If a franchisee fails to maintain the specified insurance, Cream has the option to obtain insurance on their behalf, with the franchisee required to cooperate and reimburse Cream for 120% of the premium costs. This ensures that Cream's interests are protected and that the franchise operates with adequate coverage, although the franchisee is ultimately responsible for ensuring sufficient coverage for their shop's specific needs.