Does Afuri Ramen Dumpling require worker's compensation insurance, and if so, in what amounts?

According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, franchisees are required to obtain and maintain worker's compensation and employer's liability insurance. The specific amounts are mandated by statute. This means franchisees must comply with the worker's compensation laws of the state in which they operate their Afuri Ramen Dumpling restaurant.

Worker's compensation insurance is a standard requirement in franchising, as it protects both the franchisee and their employees in the event of workplace injuries. The franchisee is responsible for covering the costs of these insurance policies. The FDD also states that Afuri Ramen Dumpling may periodically increase the amounts of coverage required under such insurance policies and require different or additional kinds of insurance at any time, including higher liability limits, to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards, or other relevant changes in circumstances.

Prospective Afuri Ramen Dumpling franchisees should research the specific worker's compensation requirements in their state to understand the potential costs associated with this insurance. It is also important to note that Afuri Ramen Dumpling requires the franchisee to maintain unemployment insurance and state disability as required by governing laws. Additionally, franchisees must ensure that their insurance policies meet the criteria set by Afuri Ramen Dumpling, including naming Afuri Ramen Dumpling and its affiliates as additional insureds and providing a waiver of subrogation rights.