What A.M. Best Rating is required for insurance carriers approved by Checkersrallys?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
All insurance policies must: (1) be issued by carriers approved by us with an A.M. Best Rating of not less than A VII; (2) contain such types and minimum amounts of coverage, exclusions and maximum deductibles as we prescribe at any time and from time to time; (3) name us and our Affiliates as additional insureds for claims related to the operation of the Franchised Restaurant; (4) provide for thirty (30) days' prior written notice to us of any material modification, cancellation or expiration of such policy; (5) provide a waiver of subrogation in favor of us and our Affiliates; and (6) include such other provisions as we may require at any time and from time to time.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, franchisees must secure insurance policies from carriers with a minimum A.M. Best Rating of A VII. This requirement ensures that the insurance providers are financially stable and capable of covering potential claims.
This stipulation is important for prospective franchisees because it limits the pool of acceptable insurance providers. Franchisees must verify that their chosen insurance carriers meet this rating standard to comply with Checkersrallys's requirements. Failure to use an approved carrier could result in the franchisee being in breach of the franchise agreement.
Checkersrallys also retains the right to modify the required coverage types and amounts, exclusions, and deductibles. They may also demand additional insurance coverage to reflect inflation, new risks, changes in laws, or higher damage awards. Franchisees must stay informed of any changes to these requirements to maintain compliance and adequate protection for their business.