What is the maximum deductible amount permitted for a Carls franchisee's insurance policy without written approval from CJR?

According to Carls's 2024 Franchise Disclosure Document, a franchisee's insurance policy cannot have a deductible exceeding $100,000 unless Carls provides written approval. This requirement is part of the general insurance requirements that Carls franchisees must adhere to.

This stipulation ensures that franchisees maintain adequate insurance coverage to protect both their business and Carls from potential liabilities. By setting a limit on the deductible amount, Carls aims to prevent franchisees from assuming excessive risk, which could lead to financial strain or inadequate compensation in the event of a claim. Franchisees need to factor in the cost of insurance policies with deductibles at or below this threshold when assessing their overall investment and operating expenses.

For a prospective Carls franchisee, this means carefully evaluating insurance options and costs to comply with Carls's requirements. If a franchisee desires a higher deductible for cost savings, they must obtain written approval from Carls, which may or may not be granted. This requirement helps Carls manage risk across its franchise system and ensures that franchisees have sufficient coverage to meet potential obligations.