Does Browns Chicken's separate insurance affect the franchisee's obligation to maintain insurance coverage?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee's obligations to maintain insurance coverage as herein described shall not be affected in any manner by reason of any separate insurance maintained by Brown, nor shall the maintenance of such insurance relieve Franchisee of any obligations under Section 24 of this Agreement.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, the franchisee's obligation to maintain insurance coverage is not affected by any separate insurance maintained by Browns Chicken. The franchisee must still adhere to the insurance requirements outlined in Section 24 of the Franchise Agreement, regardless of any insurance policies Browns Chicken may have.
This means that even if Browns Chicken has its own insurance coverage, the franchisee is still responsible for obtaining and maintaining the required insurance policies as specified in the franchise agreement. This includes, but is not limited to, comprehensive public and product liability insurance, motor vehicle liability insurance, general casualty insurance, employment practices liability, workmen's compensation insurance, and business interruption insurance.
The franchisee must ensure that Browns Chicken is named as an additional insured on a primary basis in each insurance policy and that Browns Chicken receives ten days' prior written notice of any material modification, cancellation, or expiration of the policy. Failure to maintain the required insurance coverage can result in Browns Chicken obtaining the insurance on behalf of the franchisee, with the franchisee responsible for all costs and premiums, plus an additional 10% administration fee.