What is the minimum aggregate limit for Commercial General Liability insurance that a Cream franchisee must maintain?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
| Policy/Coverage Type | Minimum Limits |
|---|---|
| Commercial General Liability | $1,000,000 per occurrence and $2,000,000 in the aggregate, |
| including bodily injury and property damage; $2,000,000 | |
| products liability, personal and advertising liability, and products | |
| and completed operations coverage. |
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 22–24)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, franchisees are required to maintain Commercial General Liability insurance with a minimum aggregate limit of $2,000,000. This coverage includes bodily injury and property damage, as well as $2,000,000 for products liability, personal and advertising liability, and products and completed operations coverage.
This requirement ensures that Cream franchisees have adequate financial protection against potential liabilities arising from their business operations. The $2,000,000 aggregate limit means that the insurance policy will cover up to this amount for all claims made during the policy period. The coverage extends to various aspects of the business, including injuries or damages occurring on the premises, liabilities related to the products sold, and damages resulting from advertising or completed operations.
Franchisees must secure and maintain this insurance coverage at their own expense. It is important for prospective franchisees to factor in the cost of this insurance when evaluating the overall investment required to start and operate a Cream franchise. Failing to maintain the required insurance coverage could result in a breach of the franchise agreement and potential legal and financial repercussions.