What is the minimum required coverage amount per occurrence for Commercial General Liability insurance 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. |
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 coverage of $1,000,000 per occurrence. This coverage includes bodily injury and property damage. Additionally, the insurance must include $2,000,000 in the aggregate, covering products liability, personal and advertising liability, and products and completed operations.
This requirement ensures that Cream franchisees have adequate financial protection against potential liabilities arising from their business operations. The per occurrence limit protects against individual incidents, while the aggregate limit covers the total claims within a policy period. The inclusion of product liability, personal and advertising liability, and products and completed operations coverage broadens the scope of protection for the franchisee.
Franchisees should factor in the cost of this insurance coverage when evaluating the overall investment required to start and operate a Cream franchise. It is important to shop around for the best insurance rates and coverage options that meet Cream's requirements. Failing to maintain the required insurance coverage could result in a breach of the franchise agreement and potential termination of the franchise.