Buying a franchise means your insurance isn’t up to you alone — your Franchise Disclosure Document (FDD) and franchise agreement spell out exactly what coverage you must carry, at what limits, with what endorsements, before you can open. Falling short isn’t just a coverage gap: a lapsed or non-compliant policy can put you in default of your franchise agreement. We build franchise-compliant packages and issue the certificates your franchisor requires — get multiple quotes within minutes.
What franchise agreements typically require
- General liability at $1 million per occurrence / $2 million aggregate — the standard FDD minimum, with some brands requiring more
- The franchisor named as additional insured, often on a primary and non-contributory basis
- A waiver of subrogation in the franchisor’s favor — an endorsement many off-the-shelf policies miss
- Workers’ compensation per state law — and often required by the brand even where state law makes it optional
- Liquor liability if you serve alcohol, commercial auto (or hired & non-owned auto) if you deliver
- Property coverage at replacement cost, frequently with business interruption coverage
- Umbrella/excess liability when base limits don’t reach the brand’s required totals
The COI is the whole game
Your franchisor doesn’t read your policy — they read your certificate of insurance. Most brands require a compliant COI before opening day and again at every renewal, showing the exact limits, additional-insured wording, and endorsements from the agreement. We match your certificate to your FDD’s insurance section line by line, so it passes brand review the first time.
Multi-unit franchisees
Opening a second or third location changes the math: each location must independently satisfy the FDD minimums, property values stack, and many operators consolidate locations onto a single program with one renewal date and one certificate workflow. If you’re expanding, quote the whole portfolio at once — it’s almost always cheaper than location-by-location policies.
Fast food, QSR, and food franchise concepts
We insure franchisees across quick-service, fast casual, pizza, coffee, sandwich, dessert, and full-service brands. Every brand’s insurance section reads a little differently — send us your FDD’s insurance item and we’ll quote to it exactly. Also see our fast food insurance and restaurant insurance cost guide.
Frequently asked questions
Where do I find my franchise’s insurance requirements?
In your FDD’s insurance section and repeated in the franchise agreement itself — coverage types, minimum limits, additional-insured status, and certificate requirements. Send it to us and we’ll quote to it exactly.
What happens if my policy lapses?
Beyond being uninsured, a lapse typically breaches the franchise agreement — franchisors treat missing coverage as a default issue, and any claim during the gap can land on you personally. Automatic renewal tracking is part of how we service franchise accounts.
Does my franchisor’s corporate insurance cover me?
No — franchisees are independent businesses. The brand’s policy protects the brand; your locations need their own coverage naming the franchisor as additional insured.
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The full franchise toolkit
Go deeper: what drives franchise insurance costs, multi-unit franchise programs, and our FDD insurance requirements checklist — the same review we run when a franchisee sends us their FDD.