Who must Browns Chicken franchisees name as an additional insured on their insurance policies?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Each insurance policy must name Brown's Chicken, LLC 55 East Park Boulevard, Villa Park, Illinois 60181 as additional insured on a primary basis, and shall provide for 10 days prior written notice to Brown of any material modification, cancellation, or expiration of such policy.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–22)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, franchisees are required to name Browns Chicken, LLC as an additional insured on their insurance policies. Specifically, the franchisee must list "Brown's Chicken, LLC 55 East Park Boulevard, Villa Park, Illinois 60181" as an additional insured on a primary basis.
This requirement ensures that Browns Chicken is protected from potential liabilities arising from the operation of the franchise. By being named as an additional insured, Browns Chicken can directly benefit from the franchisee's insurance coverage in the event of a claim. This is a common practice in franchising, as it provides an added layer of financial security for the franchisor.
Furthermore, the insurance policy must provide Browns Chicken with 10 days prior written notice of any material modification, cancellation, or expiration of the policy. This allows Browns Chicken to monitor the franchisee's compliance with the insurance requirements and take necessary steps to ensure continuous coverage. Franchisees should ensure they understand these requirements and maintain adequate insurance coverage throughout the term of their franchise agreement.