Is general casualty insurance required for an Aw Papa Ray's Pizza Restaurant?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
brand . You agree not to recruit or hire, either directly or indirectly, any employee (or former employee for six (6) months after his or her employment has ended) of a Papa Ray's Pizza Restaurant operated by us, our affiliate or another Papa Ray's Pizza franchisee without our prior written consent.
- 11.12 Insurance. You must obtain prior to opening your Papa Ray's Pizza Restaurant and maintain at all times during the term of this Agreement the following insurance coverage under policies of insurance issued by carriers whom we approve: (1) comprehensive public liability, product liability and motor vehicle liability (including hired and non-owned auto liability) insurance against claims for bodily and personal injury, death, property damage, and injuries caused by or occurring in conjunction with the operation of the Papa Ray's Pizza Restaurant or your conducting business pursuant to this Franchise Agreement containing minimum coverage we prescribe from time to time but in no event less than One Million Dollars ($1,000,000) per occurrence and Two Million Dollars ($2,000,000) in the aggregate; (2) general casualty insurance
including fire and extended coverage, vandalism, and malicious mischief insurance for 100% of the replacement value of the Papa Ray's Pizza Restaurant and its contents; (3) workers' compensation insurance and employer's liability insurance as required by applicable law; and (4) business interruption insurance for a minimum of twelve (12) months. We may periodically increase or decrease the amounts of coverage required under these insurance policies and require different or additional kinds of insurance at any time, including excess liability insurance, to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards, or other relevant changes in circumstances. Each insurance policy must name us (and, if we request it, our officers, members, managers and employees) as an additional insured and must provide us with thirty (30) days advance written notice of any material modification, cancellation, or expiration of the policy.
Before you open the Papa Ray's Pizza Restaurant and before the expiration of the term of each insurance policy, you must furnish us with a copy of each policy you are to maintain for the upcoming term, along with evidence of the payment of the premium for each. If you do not maintain the required insurance coverage, or do not furnish us with satisfactory evidence of your insurance coverage and the payment of the premiums for them, we may, but have no obligation to, and in addition to our other rights and remedies under this Agreement, any required insurance coverage on your behalf. In such case, you agree to fully co
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, franchisees are required to obtain general casualty insurance. In addition to general casualty insurance, franchisees must obtain comprehensive public liability, product liability, and motor vehicle liability insurance with minimum coverage of $1,000,000 per occurrence and $2,000,000 in the aggregate. Franchisees must also carry fire and extended coverage, vandalism, and malicious mischief insurance for 100% of the replacement value of the Papa Ray's Pizza Restaurant and its contents.
Aw franchisees must also maintain workers' compensation and employer's liability insurance as required by applicable law, as well as business interruption insurance for a minimum of twelve months. Aw can periodically increase or decrease the amounts of coverage required and may also require different or additional kinds of insurance at any time, including excess liability insurance, to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards, or other relevant changes in circumstances.
Each insurance policy must name Aw (and, if requested, its officers, members, managers and employees) as an additional insured and must provide Aw with thirty days advance written notice of any material modification, cancellation, or expiration of the policy. Before opening the Papa Ray's Pizza Restaurant and before the expiration of the term of each insurance policy, franchisees must furnish Aw with a copy of each policy and evidence of premium payment. If a franchisee fails to maintain the required insurance coverage or provide satisfactory evidence, Aw has the option to obtain the insurance on the franchisee's behalf, with the franchisee responsible for all costs and premiums incurred.