What is the minimum liability coverage required for Restaurant Recovery Insurance (or equivalent) due to Food Borne Illness for a Monicals Pizza franchise?

According to Monicals Pizza's 2025 Franchise Disclosure Document, franchisees are required to maintain Restaurant Recovery Insurance (or an equivalent) to cover potential foodborne illness incidents. The minimum liability coverage for this insurance is $1,000,000. This coverage is essential to protect both the franchisee and Monicals Pizza from significant financial losses that could arise from lawsuits or other claims related to foodborne illnesses.

This insurance is one of several types of coverage Monicals Pizza requires franchisees to secure and maintain throughout the term of their franchise agreement. Other required coverages include commercial general liability insurance, automobile liability insurance, and worker's compensation insurance. The franchisor also retains the right to increase the minimum liability protection requirements annually to reflect inflation, changes in liability standards, or future damage awards.

For a prospective Monicals Pizza franchisee, understanding and securing the required insurance coverage is a critical step in starting and operating the business. The franchisee must obtain the necessary policies within ninety (90) days of the Effective Date, but no later than the commencement of operations. Furthermore, the liability policy must expressly name Monicals Pizza as an additional insured, providing an extra layer of protection for the franchisor.

It is important for potential franchisees to factor in the cost of these insurance policies when evaluating the overall investment required to open and operate a Monicals Pizza franchise. Failing to maintain the required insurance coverage could result in a breach of the franchise agreement and potential termination of the franchise.