What is the minimum aggregate coverage for comprehensive public liability insurance required for an Aw Papa Ray's Pizza Restaurant?

According to Aw's 2025 Franchise Disclosure Document, franchisees must obtain and maintain comprehensive public liability, product liability, and motor vehicle liability insurance. This insurance must cover 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 the franchisee's business operations under the Franchise Agreement. The minimum coverage required is $1,000,000 per occurrence and $2,000,000 in the aggregate.

In addition to the comprehensive public liability insurance, franchisees are also required to secure general casualty insurance, as well as 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. Franchisees must also maintain workers' compensation and employer's liability insurance as required by applicable law, and business interruption insurance for a minimum of twelve months.

Aw may periodically increase or decrease the required coverage amounts and may also require different or additional kinds of insurance at any time, including excess liability insurance. This can be due to factors such as inflation, identification of new risks, changes in law or standards of liability, or higher damage awards. Franchisees must name Aw (and its officers, members, managers, and employees, if requested) as an additional insured on each policy and provide Aw with 30 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 each insurance policy term, franchisees must provide 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 of coverage and premium payment, Aw has the right, but not the obligation, to obtain the necessary insurance on the franchisee's behalf. In such cases, the franchisee agrees to cooperate fully with Aw, execute all required forms, allow inspections of the Papa Ray's Pizza Restaurant, and pay all costs and premiums incurred by Aw on demand. The franchisee's obligation to maintain insurance coverage is not reduced by any separate insurance maintained by Aw, nor does Aw's insurance relieve the franchisee of their obligations under the Franchise Agreement.