Must the insurance carriers be approved by Aw 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 damag
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, franchisees must secure insurance coverage from carriers that Aw approves. This requirement is in place both before the Papa Ray's Pizza Restaurant opens and throughout the term of the Franchise Agreement.
The required insurance coverage includes 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. Additionally, franchisees must maintain general casualty insurance, including fire and extended coverage, vandalism, and malicious mischief insurance for 100% of the replacement value of the restaurant and its contents. Workers' compensation and employer's liability insurance, as required by law, and business interruption insurance for a minimum of twelve months are also mandatory.
Aw has the right to periodically adjust the required coverage amounts and types of insurance. Each policy must name Aw as an additional insured and provide them with 30 days' advance written notice of any changes or cancellation. Franchisees must provide Aw with copies of all insurance policies and evidence of premium payments before opening and before each policy's expiration. If a franchisee fails to maintain the required insurance, Aw has the option to obtain coverage on their behalf, with the franchisee responsible for all associated costs and premiums. This ensures that Aw can protect its brand and interests, while the franchisee bears the financial responsibility for maintaining adequate insurance coverage.