Franchise Restaurant Insurance: What Owners Must Know in 2026

Owning a franchise restaurant is different from owning an independent restaurant.

You answer to:

• A franchisor

• A landlord

• Lenders

• And state regulators

Each of them may require specific insurance limits, endorsements, and certificates.

A properly structured franchise insurance program typically includes:

• Commercial General Liability (often with higher limits)

• Commercial Property (Building or Tenant Improvements)

• Business Personal Property

• Workers’ Compensation

• Liquor Liability (if applicable)

• Business Interruption

• Equipment Breakdown

• Hired & Non-Owned Auto

• Umbrella Liability

Many franchise agreements require:

• Additional insured endorsements

• Waiver of subrogation

• Primary & non-contributory wording

• Specific minimum limits

Failure to comply can place your franchise agreement at risk.

If you operate a franchise location, your insurance should match your franchise agreement — not just a generic restaurant policy.

Call 704-248-2657 to review your franchise insurance requirements.

About the Author

Renado Robinson is President and CEO / Founder of Crosswinds Insurance Agency. With an underwriting background, he helps franchise owners structure policies that satisfy contractual requirements while protecting profitability.