What are the minimum limits for Employer's Liability insurance required for a Carls Jr. franchise?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
nts, required by Section 15.B. CJR, and any
entity with an insurable interest designated by CJR, shall be an additional insured in such liability policies, except for workers' compensation/employer's liability, and loss payee for property to the extent each has an insurable interest.
- B. All insurance policies shall be written by an insurance company or companies satisfactory to CJR, in compliance with the standards, specifications, coverages and limits set forth in the OPM or otherwise provided to Franchisee in writing. These policies shall 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. C
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, a franchisee must maintain Employer's Liability insurance with minimum limits of $500,000. This coverage is in addition to Workers' Compensation, which must be statutory as required by law. The Employer's Liability insurance must also be in effect for all of the franchisee's employees who participate in any of the training programs described in Section 13 of the FDD.
Carls Jr. also stipulates that the franchisee may meet the required limits through a combination of Primary and Umbrella/Excess Liability coverage. If the franchisee chooses to use Umbrella/Excess Liability coverage, it must follow the form of the underlying Employer's Liability coverage.
It is important to note that the franchisee may also be required to carry other insurance as mandated by the state or locality in which the Franchised Restaurant operates. Franchisees should consult with their insurance providers to ensure they meet all requirements and maintain adequate coverage.