What specific coverages must be included in the Commercial General Liability insurance for a Carls Jr. franchise?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
iliates in the Proprietary Marks, including without limitation their interests in litigation or proceedings before the U.S. Patent and Trademark Office or other tribunal relating to the Proprietary Marks.
15. INSURANCE
A. Franchisee shall be responsible for all loss or damage arising from or related to Franchisee's development and operation of the Franchised Restaurant, and for all demands or claims with respect to any loss, liability, personal injury, death, property damage, or expense whatsoever occurring upon the premises of, or in connection with the development or operation of, the Franchised Restaurant. Franchisee shall, at its sole expense, maintain in full force and effect throughout the term of this Agr
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, franchisees must maintain Commercial General Liability insurance with specific coverages. The policy limits must not be less than $5,000,000 per occurrence and in the aggregate. The coverage must apply per location and include contractual liability, broad form property damage, personal and advertising injury, product liability, and completed operations. The coverage must not exclude food-borne illness. Additionally, Damage to Rented Premises coverage with limits not less than $100,000 is required.
Carls Jr. also mandates that all insurance policies be written by an insurance company satisfactory to them, adhering to the standards, specifications, coverages, and limits outlined in the OPM (presumably the Operations Procedures Manual) or otherwise provided to the franchisee in writing.
Furthermore, the FDD specifies general requirements for all insurance policies, including that coverages be primary and non-contributory, not limit coverage in the event of a claim by CJR or its affiliates, extend to all obligations and liabilities of the franchisee to third parties, and be written by an insurance company with an "A- VIII" or better rating by A.M. Best Company. These requirements ensure that Carls Jr. franchisees have comprehensive and reliable insurance coverage to protect both their business and the Carls Jr. brand.