Does the insurance requirement in the Carls Jr. Franchise Agreement constitute advice from CJR that only such policies are necessary to protect the franchisee from losses?

According to the 2025 Carls Jr. Franchise Disclosure Document, the insurance requirements outlined in the franchise agreement do not constitute advice from CJR that only those specific policies and amounts are sufficient to protect the franchisee from potential losses.

The agreement explicitly states that the franchisee acknowledges that the insurance requirements are not a representation by CJR that those policies are all that is needed. This means that while Carls Jr. mandates certain minimum insurance coverages, it is the franchisee's responsibility to assess their own specific risks and determine if additional insurance is necessary to adequately protect their business.

This is a standard practice in franchising, as franchisors typically set minimum insurance requirements to protect their brand and system, but franchisees are ultimately responsible for ensuring they have adequate coverage for their individual circumstances. A prospective Carls Jr. franchisee should carefully evaluate their potential risks and consult with an insurance professional to determine the appropriate level of coverage for their restaurant.