What is the minimum coverage for Worker's Compensation Insurance required for a Gold Star franchise?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
Worker's Compensation Insurance and Employer's Liability (STOP GAP) that complies with the statutory requirements of the state in which the Restaurant is located and Employers' Liability Insurance with a minimum limit equal to or greater than the statutory minimum limit required by state law.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 21–25)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, franchisees must obtain Worker's Compensation Insurance and Employer's Liability (STOP GAP) that complies with the statutory requirements of the state in which the Restaurant is located. Additionally, Employers' Liability Insurance must have a minimum limit equal to or greater than the statutory minimum limit required by state law.
This means that the specific amount of coverage required for Worker's Compensation and Employer's Liability insurance will vary depending on the state where the Gold Star restaurant is located. Franchisees must ensure they are meeting the minimum requirements set by their state's laws.
It is important for prospective franchisees to research and understand the specific worker's compensation requirements in their state to ensure they obtain adequate coverage. Failure to comply with these requirements could result in penalties or legal issues. Gold Star also requires that all insurance policies name Gold Star Chili as an additional insured franchisor and contain standard waivers of subrogation, with the franchisee's insurance being primary and non-contributory.