From whom must an Antioch Pizza Shop franchisee obtain the required insurance coverage?
Antioch_Pizza_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
of our officers owns an interest in any supplier.
Insurance
You must obtain the insurance coverage required by the Franchise Agreement from a carrier we authorize, which insures you, us as an additional insured, and any other persons we designate by name. The insurance policies must include, at minimum: (a) comprehensive general liability insurance, including product liability insurance, with minimum limits of $1,000,000 per occurrence and $2,000,000 in the aggregate; (b) automobile liability insurance, including franchise owned, hired and non-owned vehicle coverage with a minimum combined single limit of $1,000,000 per claim; (c) workers' compensation and employer's liability insurance covering all of your employees; (d) umbrella liability insurance which also includes employer's liability and automobile liability, with minimum limits of $2,000,000 per occurrence; and (e) any such other insurance coverage or amounts as required by law or other agreement related to the franchise. The required insurance coverage must commence as of the date of the Franchise Agreement. Coverage for all insurance required under the Franchise Agreement shall include all claims, injuries, harms, or loss that may occur, arise, or be asserted at any time, even after termination, expiration, or cance
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 24–26)
What This Means (2025 FDD)
According to Antioch Pizza Shop's 2025 Franchise Disclosure Document, franchisees must secure the required insurance coverage from a carrier that the franchisor authorizes. This insurance policy must cover the franchisee, Antioch Pizza Shop as an additional insured, and any other individuals the franchisor designates.
The insurance coverage must include, at a minimum, comprehensive general liability insurance with limits of $1,000,000 per occurrence and $2,000,000 in the aggregate. It also requires automobile liability insurance, covering owned, hired, and non-owned vehicles, with a minimum combined single limit of $1,000,000 per claim. Additionally, franchisees must have workers' compensation and employer's liability insurance for all employees, as well as umbrella liability insurance, including employer's liability and automobile liability, with minimum limits of $2,000,000 per occurrence. The franchisee must also obtain any other insurance coverage or amounts as required by law or other agreements related to the franchise.
The required insurance coverage must be in effect from the date of the Franchise Agreement. This coverage must include all claims, injuries, harms, or loss that may occur, arise, or be asserted at any time, even after the termination, expiration, or cancellation of the franchise, arising from or relating to the franchise. This requirement ensures that Antioch Pizza Shop is protected from potential liabilities related to the franchisee's operations, even after the franchise relationship ends.
This type of insurance requirement is standard in franchising, as it protects the franchisor from liabilities arising from the franchisee's business operations. Prospective franchisees should confirm which insurance carriers are authorized by Antioch Pizza Shop and factor the cost of these specific insurance policies into their initial investment and ongoing operating expenses.