Which section of the Cream Franchise Agreement details the franchisee's obligation for insurance?

According to Cream's 2025 Franchise Disclosure Document, Section 8.H of the Franchise Agreement outlines the franchisee's insurance obligations. Additionally, the Area Development Agreement does not contain any stipulations regarding insurance.

Cream requires franchisees to maintain specific insurance coverage, including Workers’ Compensation with statutory minimum coverage amounts and an employer liability minimum limit of $1,000,000. Franchisees must also carry Umbrella Liability insurance of not less than $3,000,000, exceeding Commercial General Liability, Auto Liability, and Employer’s Liability.

Further insurance requirements include $1,000,000 for Trade Name Restoration/Food Borne Illness coverage, which covers lost profits due to contamination, supplier contamination, inoculations, and testing, including crisis management expenses. Franchisees also need $1,000,000 in Employment Practices Liability coverage for wrongful employment actions and third-party coverage for harassment and discrimination, naming Cream as a co-defendant. Cyber Liability insurance of $1,000,000 is required to cover data breaches, identity theft, phishing attacks, ransomware, crisis management, defense, and notification costs.

Prospective Cream franchisees should carefully review Section 8.H of the Franchise Agreement to fully understand the required insurance coverages, limits, and any additional stipulations. It is advisable to consult with an insurance professional to ensure compliance with Cream's requirements and to obtain adequate protection for their business.