What entity related to Carls Jr. must be named as an additional insured in the franchisee's liability policies?

According to the 2025 Carls Jr. Franchise Disclosure Document, Carls Jr. and its affiliates must be named as additional insured on a primary and non-contributory basis with respect to the Commercial General Liability, Automobile Liability and Umbrella/Excess Liability policies. Additionally, Carls Jr. and its affiliates must be named as Loss Payee with respect to the Commercial Property coverage.

This requirement means that the franchisee's insurance policies must protect Carls Jr. and its affiliates from certain liabilities related to the operation of the franchised restaurant. By being named as an additional insured, Carls Jr. can directly access the franchisee's insurance coverage in the event of a claim, which can help protect the brand and its reputation. The insurance policies must be primary, meaning they pay out before any insurance that Carls Jr. may have.

Furthermore, the franchisee must provide evidence of satisfactory insurance and proof of payment to Carls Jr. no later than 30 days prior to the scheduled opening date of the Franchised Restaurant, the date Franchisee takes possession of the Franchised Location, or the date construction commences at the Franchised Location, if Franchisee is contractually obligated for the construction. This ensures that the franchisee has adequate insurance coverage in place before beginning operations and protects both the franchisee and Carls Jr. from potential financial losses due to unforeseen events.