What is the minimum policy limit required for Cyber Liability insurance for a Carls Jr. franchise?

According to the 2025 Carls Jr. Franchise Disclosure Document, franchisees must maintain Cyber Liability insurance with a minimum policy limit of $1,000,000 per occurrence. This insurance coverage is specifically for network security and data privacy.

This requirement means that a Carls Jr. franchisee needs to secure an insurance policy that protects the business against potential financial losses resulting from cyberattacks, data breaches, and other related incidents. The $1,000,000 limit represents the minimum amount the insurance company will pay out per incident to cover damages, legal fees, and other associated costs.

Cyber Liability insurance is increasingly important for businesses, especially those that handle sensitive customer data or rely heavily on digital systems. By setting a minimum coverage limit, Carls Jr. aims to ensure that its franchisees have adequate financial protection in the event of a cyber incident, which can help to safeguard both the franchisee's business and the overall reputation of the Carls Jr. brand.

Prospective franchisees should factor in the cost of this insurance when evaluating the overall investment required to start and operate a Carls Jr. franchise. They should also discuss with insurance providers the specific types of cyber risks relevant to their business and whether additional coverage beyond the minimum limit is advisable.