What is the minimum combined single limit for Automobile Liability coverage that Carls Developers must maintain, including owned, leased, non-owned, and hired vehicles?

According to Carls's 2024 Franchise Disclosure Document, developers are required to maintain Automobile Liability coverage with a combined single limit of not less than $1,000,000 per accident. This coverage must include owned, leased, non-owned, and hired vehicles, and additional liability coverage may be needed for delivery services. This coverage can be part of a package policy.

Carls requires that all insurance policies be written by an insurance company satisfactory to them and comply with the standards, specifications, coverages, and limits set forth in their Operations Procedures Manual (OPM) or as otherwise provided to the developer in writing. The required limits may be satisfied through a combination of Primary and Umbrella/Excess Liability coverage. If using Umbrella/Excess Liability coverage, it must follow the form of the underlying Commercial General Liability, Automobile Liability, and Employer's Liability coverages.

This requirement ensures that Carls developers have adequate financial protection in case of accidents involving vehicles used in their business operations. Franchisees should factor in the cost of this insurance coverage when assessing the overall investment required to start and operate a Carls franchise. It is important to note that Carls may modify the types, amounts, terms, and conditions of insurance coverage required for the Franchised Restaurant, and developers will receive written notice of such modifications and must comply promptly.