What are the minimum coverage limits for the Comprehensive General Liability Insurance, including Products & Completed Operations coverage, that a Carvel franchisee must maintain?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
180 days after the Effective Date |
14. Section 10.1.C. (Grand Opening Advertising):
The Grand Opening Obligation is [Select only one: for an Other Location: $3,000 [OR for a Streetside Location: $7,500.
15. Section 10.1.E. (Local Marketing Obligation):
Your Local Marketing Obliga
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 must be at least $1,000,000 per occurrence and $2,000,000 in the aggregate.
In addition to the coverage limits, Carvel specifies that the policy can have a maximum deductible of $5,000 per occurrence. This means that for each claim, the franchisee would be responsible for paying up to $5,000 before the insurance coverage kicks in.
It is important to note that Carvel may modify these insurance requirements over time in accordance with industry standards. Franchisees are also obligated to secure coverage for other potential liabilities such as dram shop liability (if serving alcohol), workers' compensation, automobile liability, and cyber liability, each with their own specified coverage limits. Franchisees should consult the full FDD and insurance requirements to ensure full compliance.