What are the minimum insurance requirements for a general contractor during construction, leasehold improvements, renovation, refurbishment, or remodeling of a Carls Jr. Franchised Restaurant?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
es beginning with the letters "A" or "V". Earthquake insurance is also required for locations that reside in FEMA Seismic Design Categories "E" or "D"; (5) Cyber Liability (network security/data privacy) with policy limits not less than $1,000,000 per occurrence; and (6) In connection with any construction, leasehold improvements, renovation, refurbishment, or remodeling of the Franchised Restaurant, your general contractor shall maintain Commercial General Liability insurance (with products liability and independent contractor
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, when a franchisee undertakes any construction, leasehold improvements, renovation, refurbishment, or remodeling of their franchised restaurant, the general contractor must maintain specific insurance coverage. This requirement ensures that Carls Jr. is protected from potential liabilities arising from these activities.
The general contractor is required to have Commercial General Liability insurance, which includes products liability and independent contractors coverage. They must also maintain Automobile Liability coverage for owned, leased, hired, and non-owned vehicles. Additionally, the contractor needs Builder's Risk insurance with limits no less than $1,000,000. Carls Jr. must be named as an additional insured on these policies.
Furthermore, the general contractor must carry Workers' Compensation and Employer's Liability insurance as mandated by state law. These insurance requirements are put in place to protect Carls Jr. from financial losses due to accidents, injuries, or property damage that may occur during construction or remodeling activities at the franchised location. Franchisees should ensure their contractors meet these requirements to avoid any potential issues or delays during the construction process.