Can Browns Chicken increase the minimum limits of coverage required under the insurance policies?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Brown may from time to time increase the minimum limits of coverage required under such insurance policies and require different or additional kinds of insurance, including excess liability insurance, to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards, or other relevant changes in circumstances. 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, Browns Chicken has the authority to modify the required insurance coverage limits and types for its franchisees. Browns Chicken may increase the minimum coverage limits or mandate different or additional kinds of insurance to reflect factors such as inflation, new risks, changes in laws or liability standards, higher damage awards, or other relevant changes.
Browns Chicken franchisees must maintain several insurance policies, including comprehensive public and product liability insurance with a minimum liability protection of $1,000,000, general casualty insurance for the replacement value of the store and its contents, Employment Practices Liability of no less than $500,000, workmen's compensation insurance as required by law, and business interruption insurance.
The insurance policies must name Browns Chicken, LLC as an additional insured on a primary basis and provide them with 10 days' prior written notice of any material modification, cancellation, or expiration of the policy. This ensures that Browns Chicken is protected and informed about any changes to the franchisee's insurance coverage, allowing them to take necessary actions to protect their interests and the brand's reputation.
For a prospective franchisee, this means that the cost of insurance may increase over time, and they need to be prepared to adjust their insurance coverage and budget accordingly. It is important to maintain open communication with Browns Chicken and their insurance provider to ensure compliance with the evolving insurance requirements.