What statement must the insurer include in the evidence of insurance submitted by a Carls Jr. franchisee?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
The evidence of insurance shall include a statement by the insurer that the policy or policies will not be canceled or materially altered without at least 30 days' prior written notice to CJR.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, the evidence of insurance provided by a franchisee must include a statement from the insurer. This statement must guarantee that the insurance policy will not be canceled or undergo material alterations without providing at least 30 days' prior written notice to CJR (Carls Jr. Restaurants LLC).
This requirement ensures that Carls Jr. is informed well in advance of any changes to the franchisee's insurance coverage, allowing them time to ensure continuous and adequate protection for both the franchisee and the brand. This protects Carls Jr. from potential liabilities arising from underinsured or uninsured franchisees.
It is standard practice in franchising to have such stipulations in place to protect the brand's interests and maintain consistent risk management across all franchise locations. Franchisees should ensure their insurance providers are aware of this requirement to avoid any delays or complications in the insurance approval process with Carls Jr.