What are the minimum coverage limits for the Comprehensive General Liability Insurance that a Carvel franchisee must maintain, including Products & Completed Operations coverage?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
| EVENT | COMPLETION DEADLINE |
|---|---|
| Site Approval Deadline (Section 6.5.A.) | Within 150 days after the Effective Date |
| Construction Start Deadline (Section 6.5.B.) | Within 270 days after the Effective Date |
| Opening Deadline (Section 6.5.C.) | Within 360 days after the Effective Date |
13. Section 10.1.C. (Grand Opening Advertising):
Your Grand Opening Obligation is [For Other Locations: $6,000, For Streetside Locations: $15,000, For First Four Streetside Locations in Emergi
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, franchisees are required to maintain Comprehensive General Liability Insurance, including Products & Completed Operations coverage. The minimum coverage limits are $1,000,000 per occurrence and $2,000,000 in the aggregate. Additionally, the policy must have a maximum deductible of $5,000 per occurrence.
This insurance protects Carvel franchisees from financial losses due to various liabilities, such as customer injuries or property damage that may occur at the franchise location. The Products & Completed Operations coverage specifically addresses liabilities arising from the products sold and services provided by the Carvel franchise, even after the customer has left the premises.
The specified coverage limits ensure that franchisees have adequate financial protection against potential claims. The $5,000 deductible means that the franchisee will be responsible for the initial $5,000 of any claim, while the insurance policy covers the remaining amount up to the policy limits. Franchisees should factor in the cost of this insurance, including the deductible, when assessing the overall financial investment required to open and operate a Carvel franchise.
Carvel franchisees must ensure that their insurance policies meet these minimum requirements to comply with the franchise agreement. Failure to maintain adequate insurance coverage could result in a breach of contract and potential termination of the franchise agreement. It is important to consult with an insurance professional to obtain the appropriate coverage and understand the terms and conditions of the policy.