What is the minimum A.M. Best Rating required for insurance carriers approved by Checkersrallys?

According to Checkersrallys's 2025 Franchise Disclosure Document, all insurance policies obtained by franchisees must be issued by carriers approved by Checkersrallys with a minimum A.M. Best Rating of A VII. This requirement ensures that the insurance carriers are financially stable and capable of meeting their obligations, providing a level of security for both the franchisee and Checkersrallys.

This requirement is a standard practice in franchising, as franchisors typically want to ensure that franchisees have adequate insurance coverage from reputable providers. The A.M. Best Rating is a widely recognized measure of an insurance company's financial strength, and setting a minimum rating helps to mitigate risks associated with under-capitalized or unstable insurers.

For a prospective Checkersrallys franchisee, this means they will need to verify that their insurance provider meets this A.M. Best Rating standard. Failure to do so could result in non-compliance with the Franchise Agreement and potential penalties. Franchisees should also be aware that Checkersrallys may periodically increase the required amounts of coverage or require different or additional insurance coverage.