What is the minimum coverage for comprehensive public liability 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 damag
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
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 related to the operation of the Papa Ray's Pizza Restaurant or the franchisee's business conduct under the Franchise Agreement. The minimum coverage required is $1,000,000 per occurrence and $2,000,000 in the aggregate.
In addition to comprehensive public liability insurance, Aw franchisees are required to secure other types of insurance coverage. These include general casualty insurance covering fire, extended coverage, vandalism, and malicious mischief for 100% of the restaurant's replacement value and its contents. Franchisees must also maintain workers' compensation and employer's liability insurance as mandated by applicable law, as well as business interruption insurance for a minimum of twelve months.
Aw retains the right to modify the required coverage amounts or types of insurance policies at any time to reflect factors such as inflation, new risks, changes in law, 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 thirty days' advance written notice of any material changes, cancellations, or expirations. Franchisees must furnish Aw with copies of all insurance policies and evidence of premium payments before opening the restaurant and before each policy's term expires. Failure to maintain the required insurance coverage allows Aw to obtain the necessary coverage on the franchisee's behalf, with the franchisee responsible for all associated costs and premiums.