What insurance policies must a Beggars Pizza franchisee obtain and maintain?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
You must obtain before opening the Restaurant, and maintain in full force and effect at all times during the term of the Franchise Agreement, at your expense, insurance policies protecting you, us, and your and our respective officers, directors, partners, agents and employees against any demand or claim with respect to personal injury, death or property damage, or any loss, liability or expense arising or occurring in connection with the Restaurant, including comprehensive general liability insurance, property and casualty insurance, business interruption insurance, statutory workers' compensation insurance, employer's liability insurance, product liability insurance, liquor liability (dram shop), and automobile insurance coverage for all vehicles used in connection with the Restaurant. These policies must be written by a responsible carrier or carriers acceptable to us and must name both us and Begcom as additional insureds, and must provide at least the types and minimum amounts of coverage specified in the Manuals.
If you fail to obtain or maintain the insurance required by the Franchise Agreement for any reason, we have the right and authority (without, however, any obligation to do so) to procure the insurance coverage on your behalf. You must pay us the full premium paid plus an administrative surcharge of 10% if we do so.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 15–18)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, franchisees are required to obtain and maintain several insurance policies. These policies are designed to protect the franchisee, Beggars Pizza itself, and their respective officers, directors, partners, agents, and employees against potential claims and liabilities. The franchisee is responsible for covering the expenses associated with these insurance policies.
The required insurance coverage includes comprehensive general liability insurance, property and casualty insurance, business interruption insurance, statutory workers' compensation insurance, employer's liability insurance, product liability insurance, liquor liability (dram shop) if applicable, and automobile insurance coverage for all vehicles used in connection with the Beggars Pizza restaurant. The specific types and minimum amounts of coverage must align with the specifications outlined in the Beggars Pizza manuals.
These insurance policies must be written by carriers acceptable to Beggars Pizza, and both Beggars Pizza and Begcom must be named as additional insureds. This requirement ensures that Beggars Pizza has some protection against potential liabilities arising from the franchisee's operations. If a franchisee fails to secure or maintain the necessary insurance, Beggars Pizza reserves the right, but not the obligation, to procure the insurance on the franchisee's behalf. In such cases, the franchisee is responsible for reimbursing Beggars Pizza for the full premium paid, along with an additional 10% administrative surcharge.