What is the minimum liability coverage required for general casualty insurance, including fire and extended coverage, for an Aw Papa Ray's Pizza Restaurant?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
nership interest in an approved supplier.
Before you open your Papa Ray's Pizza Restaurant for business, you must obtain and maintain the insurance coverage that we require from time to time and meet other insurance-related
obligations described in the Franchise Agreement. Currently, you must maintain insurance as follows: (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 the operation of the Papa Ray's Pizza Restaurant or the conduct of business pursuant to the Franchise Agreement under one or more policies of insurance with minimum liability coverage of $1,000,000 per occurrence and $2,000,000 in the aggregate; (2) general casualty insurance including fire and extended coverage, vandalism, and malicious mischief insurance for the replacement value of the Papa Ray's Pizza Restaurant and its contents; (3) workers' compensation and employer's liability insurance as required by applicable law; and (4) business interruption insurance for a minimum of 12 months. The cost of this coverage will vary, depending on the insurance carrier's charges, terms of payment and your history. Each insurance policy must name us (and, if we request it, our officers, members, manager, and employees) as an additional insured and must provide us with 30 days advance written notice of any material modification,
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–21)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, franchisees are required to maintain several types of insurance coverage. One of these is general casualty insurance, which must include fire and extended coverage, vandalism, and malicious mischief insurance. This insurance is intended to cover the replacement value of the Papa Ray's Pizza Restaurant and its contents, ensuring that franchisees can recover from potential losses due to these events.
In addition to general casualty insurance, Aw franchisees must also maintain 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. They also need to have workers' compensation and employer's liability insurance as required by applicable law, and business interruption insurance for a minimum of 12 months.
The cost of these insurance policies will vary depending on the insurance carrier's charges, terms of payment, and the franchisee's history. It is important to note that each insurance policy must name Aw (and, if requested, their officers, members, manager, and employees) as an additional insured. Furthermore, Aw must receive 30 days' advance written notice of any material modification, cancellation, or expiration of the policy, ensuring that Aw is kept informed of any changes to the franchisee's insurance coverage.