For Monicals Pizza franchisees, must the insurance policies be written by an insurance company approved by the state insurance department in the state where the franchisee operates?

According to Monicals Pizza's 2025 Franchise Disclosure Document, franchisees are required to secure insurance policies from a company approved by the state insurance department where they operate. Additionally, the insurance company must have an "AVII" Rating Classification as indicated in the latest issue of A.M. Best's Key Rating Guide. Even though A.M. Best groups "A" and "A-" in the same classification, Monicals Pizza specifically requires an "AVII" rating.

This requirement ensures that Monicals Pizza franchisees maintain coverage from reputable and financially stable insurance providers. It also helps protect both the franchisee and Monicals Pizza from potential financial losses due to unforeseen events.

Franchisees must provide certificates of insurance annually, at least ten days before the expiration of each policy, demonstrating compliance with these insurance requirements. These certificates must also state that the policies cannot be canceled or altered without at least thirty days' prior written notice to Monicals Pizza. Should a franchisee fail to maintain the required insurance coverage, Monicals Pizza has the right, but not the obligation, to procure the necessary insurance and charge the premiums and associated expenses to the franchisee.