What minimum limit of commercial property insurance is required for a Cream franchise, considering full replacement cost value?

According to Cream's 2025 Franchise Disclosure Document, franchisees must maintain commercial property insurance coverage at a minimum limit equal to the full replacement cost value of all leasehold improvements, furniture, fixtures, equipment, and inventory. This insurance must be on a special form basis.

In addition to covering the full replacement cost, the commercial property insurance policy must include specific provisions. It must cover flood and earthquake damage if the Cream location is in a geographically prone zone. The policy must also include business income and extra expense coverage for 12 months, covering actual losses sustained or at least 50% of the franchisee's annual revenue. Furthermore, the insurance must cover rent and royalties due to Cream and provide extended business income coverage for 180 days.

Cream also mandates other insurance coverage, including Commercial General Liability insurance with a minimum of $1,000,000 per occurrence and $2,000,000 in the aggregate, covering bodily injury and property damage. This also includes $2,000,000 in products liability, personal and advertising liability, and products and completed operations coverage. Auto Liability insurance is required with a $1,000,000 combined single limit for all owned, hired, and non-owned automobiles used in connection with the Cream shop.