What is the minimum liability coverage required for umbrella excess liability insurance for a Monicals Pizza franchise?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
- o Umbrella excess liability insurance with a minimum liability coverage of TWO MILLION DOLLARS ($2,000,000.00) (umbrella excess liability must provide coverage in excess of commercial general liability, liquor liability, automobile liability and employers liability limits);
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 12–17)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, franchisees must maintain umbrella excess liability insurance with a minimum liability coverage of $2,000,000. This umbrella policy must provide coverage exceeding the limits of the commercial general liability, liquor liability, automobile liability, and employer's liability insurance.
This requirement ensures that Monicals Pizza franchisees have substantial financial protection against large claims that could exceed the limits of their primary insurance policies. By requiring this coverage, Monicals Pizza aims to protect both the franchisee's business and the brand's reputation from significant financial losses due to unforeseen events.
Prospective franchisees should factor the cost of this insurance coverage into their initial investment and ongoing operating expenses. The FDD also notes that the liability policy, including any applicable umbrella/excess policies, must expressly name the franchisor as an additional insured, further protecting Monicals Pizza from potential liabilities.