What is the minimum combined single limit for Automobile Liability coverage required for a Carls franchise?

According to Carls's 2024 Franchise Disclosure Document, franchisees 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, with additional liability coverage as needed for delivery services. This coverage can be part of a package policy.

Carls requires this level of coverage to protect both the franchisee and the franchisor from potential financial liabilities resulting from automobile accidents. The inclusion of owned, leased, non-owned, and hired vehicles ensures comprehensive coverage for all vehicles used in the operation of the franchise. The additional liability coverage for delivery services acknowledges the increased risk associated with such operations.

Franchisees should verify with their insurance providers that their policies meet these minimum requirements and include all necessary endorsements. Additionally, franchisees should be aware that Carls may modify these insurance requirements, and they will receive written notice of any such changes. Franchisees can meet the required limits through a combination of Primary and Umbrella/Excess Liability coverage. If satisfied through an Umbrella/Excess Liability coverage, the Umbrella/Excess Liability must be "following form" of the underlying Commercial General Liability, Automobile Liability, and Employer's Liability coverages.