What is the minimum general aggregate limit for the general public liability insurance that an Exit franchisee must maintain?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
vice, and shall defend, indemnify and hold EXIT and Subfranchisor harmless from any and all claims, liability or expenses, including attorneys' fees, which EXIT or Subfranchisor may incur as a result of the conduct of Franchisee's business.
9.7. Insurance
- (A) Franchisee shall maintain and keep in force, at its expense, such forms of insurance, including, but not limited to, general public liability insurance against claims for personal injury, death, or property damage with a general aggregate limit of not less than $1,000,000, errors and omissions insurance with a general aggregate limit of not less than $1,000,000 with such approved insurance companies as Subfranchisor and EXIT reasonably shall require. Franchisee shall carry such additional amounts and forms of insurance which Subfranchisor shall reasonably deem prudent for a Franchisee to carry, should the circumstances or conditions so merit Franchisee carrying such amount and type of insurance, and provided such insurance is then customarily required and maintained by similar businesses. Franchisee shall cause its insurance agency to send directly to EXIT and Subfranchisor, copies of all such polices which shall include EXIT and Subfranchisor and all of their officers and directors as named insureds and such policies shall not be canceled except on ten (10) days written notice to EXIT and Subfranchisor. Franchisee shall, prior to conducting
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, franchisees are required to maintain general public liability insurance. This insurance must cover claims for personal injury, death, or property damage. The minimum general aggregate limit for this liability coverage is $1,000,000.
In addition to general public liability insurance, Exit franchisees must also maintain errors and omissions insurance with a general aggregate limit of not less than $1,000,000. The franchisee is responsible for securing these insurances from approved insurance companies that Exit and the Subfranchisor reasonably require.
Exit franchisees must also carry any additional insurance amounts or forms that the Subfranchisor deems prudent, provided that similar businesses customarily require and maintain such insurance. Furthermore, franchisees must ensure that their insurance agency sends copies of all policies to both Exit and the Subfranchisor, naming them and their officers and directors as named insureds. These policies cannot be canceled without ten days' written notice to Exit and the Subfranchisor. Prior to commencing business operations, franchisees must provide certificates of insurance to Exit and the Subfranchisor, evidencing that the required insurance is in full force and effect.