What is the required coverage basis for the Special Perils Insurance for a Gold Star restaurant?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- Special Perils Insurance including theft on the Restaurant to include but not limited to all furniture, fixtures, equipment, signs (attached and unattached), exterior glass, supplies and other property used in the operation of the Restaurant (including flood and/or earthquake coverage where applicable,) for the full repair and replacement value with no coinsurance clause or applicable agreed amount.
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 Special Perils Insurance that includes theft coverage for the restaurant. This insurance must cover all furniture, fixtures, equipment, signs (both attached and unattached), exterior glass, supplies, and other property used in the restaurant's operation.
The required coverage basis for the Special Perils Insurance is the full repair and replacement value of the covered items. The policy must not include a coinsurance clause or an applicable agreed amount. Additionally, if the restaurant is located in an area identified by the Federal Emergency Management Agency as having special flood hazards, the insurance must include flood coverage. Similarly, earthquake coverage is required where applicable.
This requirement ensures that Gold Star franchisees are adequately protected against potential losses due to theft or damage to their restaurant's assets. By mandating full repair and replacement value coverage without coinsurance, Gold Star aims to minimize the financial burden on franchisees in the event of a covered loss, allowing them to quickly restore their operations. Franchisees should consult with insurance professionals to determine the appropriate coverage levels and ensure compliance with these requirements.