Is Cyber Liability insurance required or recommended for a Gold Star restaurant, and if recommended, what is the minimum coverage?

According to Gold Star's 2025 Franchise Disclosure Document, Cyber Liability insurance is recommended, but not required. The FDD specifies that Gold Star franchisees should carry Employment Practices Liability insurance with $1,000,000 coverage per claim, and Cyber Liability insurance with a minimum of $250,000 coverage.

While not mandatory, Gold Star recommends that franchisees obtain Cyber Liability insurance. This type of insurance is designed to protect the business from losses and liabilities associated with data breaches, cyberattacks, and other cyber-related incidents. Given the increasing reliance on digital systems for operations, payment processing, and customer data management, having this coverage can mitigate potential financial and reputational damage resulting from a cyber incident.

It is important to note that Gold Star retains the right to increase the minimum coverage amounts or require different or additional kinds of insurance to reflect inflation, changes in standards of liability, higher damage awards, or other relevant changes in circumstances. Gold Star will provide at least 30 days' written notice of any such changes. Therefore, franchisees should stay informed about any updates to the insurance requirements to ensure they maintain adequate coverage throughout the term of their franchise agreement.