What are the minimum coverage limits for the commercial general liability insurance, including products liability, property damage, owned and non-owned automobile coverage and personal injury coverage that a Jersey Mikes franchisee must obtain?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
with the System Standards.
You must maintain the following insurance coverage, protecting you, Company and JMFS, and Company's and JMFS's respective officers, directors, partners and employees, naming Company and JMFS each as an additional insured:
- a. Commercial general liability insurance, including products liability, property damage, owned and non-owned automobile coverage and personal injury coverage with the following minimum limits:
- (i) Each Occurrence: $1,000,000
- (ii) Damage to Rented Premises: $100,000 (each occurrence)
- (iii) Medical Expense (any one person): $5,000
- (iv) Personal and Advertising Injury: $1,000,000
- (v) General Aggregate: $2,000,000
- (iv) Products Completed Oper
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 24–28)
What This Means (2025 FDD)
According to Jersey Mikes's 2025 Franchise Disclosure Document, franchisees are required to maintain commercial general liability insurance with specific minimum coverage limits. This insurance must include products liability, property damage, owned and non-owned automobile coverage, and personal injury coverage. The minimum coverage requirements are $1,000,000 for each occurrence, $100,000 for damage to rented premises (each occurrence), $5,000 for medical expenses (any one person), $1,000,000 for personal and advertising injury, $2,000,000 for the general aggregate, and $2,000,000 for products completed operations aggregate.
Jersey Mikes also requires that the franchisee, the Company, and JMFS (Jersey Mike's Franchise Systems) are protected under the insurance coverage, including their respective officers, directors, partners, and employees. Both the Company and JMFS must be named as additional insureds on the policy. This requirement ensures that Jersey Mikes and its affiliates are protected from potential liabilities arising from the franchisee's operations.
In addition to commercial general liability insurance, Jersey Mikes franchisees must also maintain property insurance, business interruption insurance, employment practices liability insurance, and workers' compensation insurance. The FDD states that failure to procure the minimum required insurance coverage allows Jersey Mikes to procure the insurance and charge the cost to the franchisee, and failure to maintain the required insurance coverage may result in termination of the Franchise Agreement. The cost of insurance is estimated to be between $1,000 and $24,780, as shown in the table in Item 7.