What is the minimum coverage limit required for Cyber Liability insurance that a Carvel franchisee must maintain?

According to Carvel's 2025 Franchise Disclosure Document, franchisees must maintain Cyber Liability insurance with a minimum coverage limit of $1,000,000. This insurance is intended to protect the business from losses resulting from cyberattacks, data breaches, and other cyber-related incidents.

For a prospective Carvel franchisee, this means allocating budget for this specific insurance coverage to meet the franchisor's requirements. Failing to secure and maintain adequate cyber liability insurance could result in a breach of the franchise agreement.

Cyber Liability insurance is increasingly important for businesses of all sizes, especially those that handle sensitive customer data or rely heavily on technology. The $1,000,000 minimum coverage reflects Carvel's effort to ensure franchisees are adequately protected against potential cyber risks, which aligns with common practices in the franchise industry to mitigate risks associated with data and technology.