What is the minimum Damage to Rented Premises coverage limit required for a Carls Jr. franchise?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
he extent each has an insurable interest. All insurance policies must be written by an insurance company (or companies) satisfactory to us in compliance with the standards, specifications, coverages and limits set forth in the OPM or otherwise provided to you in writing.
These required insurance policies include, at a minimum, the following: (1) Commercial General Liability insurance with policy limits not less than $5,000,000 per occurrence and in the aggregate. Coverage shall apply per location, including coverage for contractual liability, broad form property damage, personal and advertising injury, product liability and completed operations, not to exclude food-borne illness, as well as Damage to Rented Premi
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 37–41)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, franchisees must maintain Damage to Rented Premises coverage with limits not less than $100,000 as part of their Commercial General Liability insurance. This coverage is a component of the broader insurance requirements that Carls Jr. mandates to protect against liabilities arising from the operation of the franchised restaurant. The Commercial General Liability insurance policy must have limits of not less than $5,000,000 per occurrence and in the aggregate.
This insurance coverage must apply per location and include coverage for contractual liability, broad form property damage, personal and advertising injury, product liability, and completed operations, explicitly including food-borne illness. The Damage to Rented Premises coverage specifically addresses potential damage to the property the franchisee rents for their Carls Jr. restaurant.
Carls Jr. also requires that they, and any entity they designate with an insurable interest, be named as an additional insured in the liability policies, except for workers' compensation/employer's liability, and as a loss payee for property to the extent each has an insurable interest. All insurance policies must be written by an insurance company satisfactory to Carls Jr. and comply with the standards, specifications, coverages, and limits set forth in the Operations Procedures Manual or otherwise provided in writing. Franchisees are responsible for ensuring they meet these insurance requirements throughout the term of their franchise agreement.