What is the minimum aggregate limit required for Commercial General Liability insurance, including bodily injury and property damage, for a Cream franchise?
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. | |
| Auto Liability | $1,000,000 combined single limit for all owned, hired, and non- |
| owned automobiles used in connection with your Shop(s). |
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 certain insurance policies for their shops. The minimum aggregate limit for Commercial General Liability insurance, including bodily injury and property damage, is $2,000,000. Cream also requires a per occurrence limit of $1,000,000 for Commercial General Liability.
In addition to the Commercial General Liability coverage, Cream franchisees must also maintain $2,000,000 in products liability, personal and advertising liability, and products and completed operations coverage. Franchisees are also required to carry Auto Liability insurance with a $1,000,000 combined single limit for all owned, hired, and non-owned automobiles used in connection with their Cream shop.
Cream franchisees are responsible for securing and maintaining these insurance policies at their own expense. It is important for prospective franchisees to factor in the cost of these insurance requirements when evaluating the overall investment and operating costs of a Cream franchise. Franchisees should consult with qualified insurance professionals to ensure they obtain adequate coverage to meet Cream's requirements and to protect their business from potential liabilities.