What are the minimum coverage limits per occurrence and in the aggregate for the Comprehensive General Liability Insurance, including Products & Completed Operations coverage, that Carvel franchisees 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, which includes Products & Completed Operations coverage. The minimum coverage limits are $1,000,000 per occurrence and $2,000,000 in the aggregate. Additionally, the policy can have a maximum deductible of $5,000 per occurrence.
This insurance protects Carvel franchisees from financial losses due to incidents like customer injuries, property damage, or issues related to the products sold. The 'per occurrence' limit applies to each individual incident, while the 'aggregate' limit is the total amount the insurance company will pay out during the policy term, regardless of the number of incidents.
The deductible is the amount the franchisee must pay out-of-pocket before the insurance coverage kicks in. Franchisees should consider these coverage limits and deductible amounts when selecting their insurance policies to ensure they are adequately protected against potential liabilities while also managing their costs.