What are the minimum liability limits for automobile liability insurance required for a Monicals Pizza franchise?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 15.1.5 Automobile liability insurance including liability coverage for autos owned, hired or borrowed, if applicable, by Franchisee, and liability coverage for autos owned by others ("nonowned auto" coverage) with limits of not less than ONE MILLION DOLLARS ($1,000,000.00) per occurrence for bodily injury and property damage combined;
- 15.1.6 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);
- 15.1.7 Business interruption insurance in amounts and with terms acceptable to Franchisor;
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, franchisees are required to maintain automobile liability insurance with specific minimum coverage limits. This insurance must include coverage for vehicles owned, hired, or borrowed by the franchisee, as well as non-owned auto coverage. The minimum liability limit required is ONE MILLION DOLLARS ($1,000,000.00) per occurrence for bodily injury and property damage combined.
In addition to the automobile liability insurance, Monicals Pizza franchisees must also maintain umbrella excess liability insurance with a minimum coverage of TWO MILLION DOLLARS ($2,000,000.00). This umbrella policy provides additional coverage above the limits of the commercial general liability, liquor liability, automobile liability, and employer's liability insurance.
Monicals Pizza also has the right to increase the minimum liability protection requirement annually to reflect inflation, changes in liability standards, future damage awards, or other relevant changes. Franchisees must ensure that their insurance policies are written by an insurance company approved by the state insurance department in the state they operate and have an "AVII" Rating Classification as indicated in the latest issue of A.M. Best's Key Rating Guide. Franchisees must provide certificates of insurance annually, at least ten days prior to the expiration of each policy, to demonstrate compliance with these requirements.