Franchise clause

Definition of Franchise clause

Provision in casualty insurance policy to the effect that the insurer will pay those claims only over a stated amount and that the insured is responsible for all damage under the agreed amount. This clause differs from a deductible provision in that the insured bears the loss in every claim up to the deductible amount whereas, under the franchise clause, once the claim exceeds the agreed amount, the insurer pays the entire claim.

That's the definition of Franchise clause in Black's Law Dictionary 6th Edition. Courtesy of

Official tim editorial.