What is the minimum liability coverage required for the cyber insurance policy for a Monicals Pizza franchise?

According to the 2025 Monicals Pizza Franchise Disclosure Document, franchisees must maintain a cyber insurance policy with a minimum liability coverage of $1,000,000. This insurance is required to be in effect within ninety days of the effective date of the franchise agreement, but no later than the commencement of operations.

In addition to cyber insurance, Monicals Pizza franchisees are required to obtain and maintain several other types of insurance coverage, including commercial general liability insurance, liquor liability/dram shop policy (if applicable), automobile liability insurance, umbrella excess liability insurance, business interruption insurance, and restaurant recovery insurance due to food borne illness. The specific amounts and terms for these policies must be acceptable to the franchisor.

The FDD also notes that the cost of insurance can vary based on factors such as the size and location of the franchised restaurant, the value of leasehold improvements, and the number of employees. Franchisees should inquire about the cancellation and refund policies of insurance carriers or agents before purchasing any insurance, as these amounts are typically non-refundable. Ensuring adequate insurance coverage is a critical aspect of operating a Monicals Pizza franchise, protecting both the franchisee and the franchisor from potential liabilities and losses.