What is the comprehensive general liability insurance limit required for a Floyds 99 Franchised Location?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
be payable by you immediately upon notice. The foregoing remedies will be in addition to any other remedies we may have at law or in equity.
Currently, you must obtain, maintain and provide evidence of: (i) comprehensive general liability insurance for the Franchised Location and its operations with a limit of not less than $2,000,000.00 combined single limit or with such greater limits or such other terms and conditions as may be described in the Operations Manual or required as part of any lease agreement for the Franchised Location; (ii) unemployment and worker's compensation insurance with a broad form all-states endorsement coverage sufficient to meet the requirements of the law; (iii) employment practices liability insurance of not less than $500,000 to $1,000,000 per claim, including third-party liability, wage and hour defense costs and punitive and exemplary damages claims, where insurable; (iv) all-risk personal property insurance in an amount equal to at least 100% of the replacement costs of the contents
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 24–29)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, franchisees must obtain and maintain comprehensive general liability insurance for their franchised location. The minimum required limit is $2,000,000.00 combined single limit. However, this limit may be increased if the Operations Manual specifies a higher amount or if the lease agreement for the franchised location requires it.
Floyds 99 also requires franchisees to maintain other types of insurance, including unemployment and worker's compensation insurance, employment practices liability insurance ($500,000 to $1,000,000 per claim), all-risk personal property insurance (at least 100% of replacement costs), and cyber liability insurance ($1,000,000 per claim). All insurance policies must meet Floyds 99's standards and name Floyds 99 as an additional insured, providing them with at least 30 days' notice of any termination, amendment, or cancellation.
It is important to note that Floyds 99 reserves the right to change the required types of insurance and coverage limits with 60 days' prior written notice. If a franchisee fails to maintain the required insurance, Floyds 99 has the option to obtain the insurance and charge the franchisee for the cost, including a fee for their expenses. This is in addition to any other legal or equitable remedies available to Floyds 99. Prospective franchisees should factor these insurance requirements into their initial and ongoing operating costs.