What is the minimum limit for employer practices liability insurance, including actions of a third-party, required for an Ella Cafe franchise?

According to Ella Cafe's 2024 Franchise Disclosure Document, franchisees must maintain employer practices liability insurance with a limit of at least $2,000,000. This coverage must include protection against actions of a third party. Additionally, the policy must provide a minimum of $100,000 for wage and hour disputes.

This insurance protects Ella Cafe franchisees from potential liabilities arising from employment-related claims, such as discrimination, wrongful termination, or harassment. The inclusion of third-party actions broadens the scope of coverage, addressing potential liabilities stemming from the conduct of individuals or entities not directly employed by the franchisee but associated with the business. The specific mention of wage and hour disputes highlights the importance of compliance with labor laws and provides financial protection against related claims.

The franchisor, Ella Cafe, also retains the right to modify these insurance requirements over time, including the types of coverage and the amounts. Franchisees are also free to acquire and maintain insurance with higher policy limits or lower deductibles than Ella Cafe requires.

It is important to note that these minimum insurance requirements do not constitute advice or a representation that such coverages are necessary or adequate to protect the franchisee from losses in connection with the Center.