What is the minimum combined single limit required for Automobile Liability coverage, including owned, leased, non-owned and hired vehicles, per accident for a Carls franchise?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
shall, at its sole expense, maintain in full force and effect throughout the term of this Agreement that insurance which Franchisee determines is necessary or appropriate for liabilities caused by or occurring in connection with the development or operation of the Franchise
Source: Item 23 — RECEIPTS (FDD pages 80–480)
What This Means (2024 FDD)
According to the 2024 Carls Franchise Disclosure Document, franchisees must maintain Automobile Liability coverage for owned, leased, non-owned, and hired vehicles. The minimum combined single limit required is $1,000,000 per accident. This coverage may be included as part of a package policy.
This requirement ensures that Carls franchisees have adequate financial protection in case of an accident involving a vehicle used in the business. The $1,000,000 limit is a standard amount for liability coverage, reflecting the potential for significant damages or injuries in vehicle-related incidents. Franchisees should consult with their insurance providers to determine the appropriate level of coverage for their specific circumstances, considering factors such as the number of vehicles used and the nature of their operations.
Carls also requires additional liability coverage if the franchisee offers delivery services. This highlights the importance of assessing all potential risks associated with the business and securing appropriate insurance coverage. Franchisees should carefully review the insurance requirements outlined in the Franchise Disclosure Document and consult with insurance professionals to ensure they meet all obligations and adequately protect their business.