What is the required deductible for Automobile Insurance for a Creative World School franchise?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF INSURANCE | MINIMUM REQUIREMENT |
|---|---|
| Automobile Insurance (Acord 28) Deductible $1000 or less | $1M per accident |
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 21–25)
What This Means (2025 FDD)
According to Creative World School's 2025 Franchise Disclosure Document, franchisees must maintain automobile insurance with a deductible of $1,000 or less. The minimum requirement for automobile insurance is $1 million per accident.
This requirement ensures that Creative World School franchisees have adequate financial protection in the event of an automobile accident involving their business. By setting a maximum deductible, Creative World School aims to limit the franchisee's out-of-pocket expenses in such situations. The $1 million per accident minimum coverage provides a substantial safety net for potential liabilities arising from vehicle-related incidents.
Franchisees should factor in the cost of automobile insurance, keeping in mind the deductible requirement, when assessing their overall operating expenses. They should also consult with an insurance professional to determine the appropriate level of coverage for their specific needs, as the franchisor notes that these are minimum standards. Creative World School also requires that the franchise be named as an additional insured party on all insurance policies.