What is the minimum combined single limit liability protection required for comprehensive public and product liability insurance and motor vehicle liability insurance for a Browns Chicken franchise?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
ises or sublease them to another party.
Insurance.
During the term of the Franchise, you must maintain in force, under policies of insurance issued by carriers approved by Brown: (1) comprehensive public and product liability insurance and motor vehicle liability insurance (including but not limited to hired and non-owned coverage) against claims brought during or after the term of the Franchise for bodily and personal injury, death and property damage caused by or occurring in conjunction with the operation of the Store or otherwise in conjunction with your conduct of business pursuant to the Franchise, under one or more policies of insurance containing minimum liability protection of $1,000,000 combined single limit; (2) general casualty insurance, including fire and extended coverage, vandalism, and malicious mischief insurance and plate glass and general theft insurance, for the replacement value of the Store and its contents; (3) Employment Practices Liability of no less than $500,000; (4) workmen's compensation insurance as required by law; and (5) business interruption insurance for a period adequate to reestablish normal business operations. 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
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 must maintain comprehensive public and product liability insurance and motor vehicle liability insurance with minimum liability protection of $1,000,000 combined single limit. This insurance coverage must protect against claims for bodily injury, death, and property damage related to the operation of the Browns Chicken store.
Browns Chicken requires that the insurance policies be issued by carriers approved by them. Furthermore, Browns Chicken must be named as an additional insured on a primary basis in each insurance policy. This protects Browns Chicken from potential liabilities arising from the franchisee's operations. The insurance policy must also provide Browns Chicken with 10 days' prior written notice of any material modification, cancellation, or expiration of the policy.
Browns Chicken retains the right to increase the minimum limits of coverage or require different or additional kinds of insurance, including excess liability insurance, to reflect changes in circumstances such as inflation, new risks, changes in law, or higher damage awards. This means that a franchisee's insurance costs could increase over time as Browns Chicken adjusts its requirements. Franchisees need to factor in potential future increases in insurance costs when evaluating the financial feasibility of the franchise.