What is the minimum combined single limit for Auto Liability insurance that a Cream franchisee must maintain for owned, hired, and non-owned automobiles?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
automobiles used in connection with your Shop(s). |
| Policy/Coverage Type | Minimum Limits | |
|---|---|---|
| Commercial Property Insurance | Full replacement cost value of all leasehold improvements, | |
| furni |
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 Auto Liability insurance with a minimum combined single limit of $1,000,000. This coverage applies to all owned, hired, and non-owned automobiles used in connection with the operation of the Cream shop.
This requirement ensures that Cream franchisees have adequate financial protection in the event of an auto accident involving their business. The $1,000,000 limit is designed to cover potential liabilities for bodily injury and property damage caused by vehicles used for the Cream franchise.
Franchisees should factor this insurance cost into their overall business expenses. It is important to shop around for the best insurance rates while ensuring that the policy meets Cream's minimum coverage requirements. Failing to maintain the required insurance coverage could result in a breach of the franchise agreement and potential penalties.
Cream also requires franchisees to maintain Commercial Property Insurance and Commercial General Liability insurance. The Commercial General Liability insurance must be at least $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.