Is Chesters International, LLC required to be named as an additional insured on a Chesters franchisee's comprehensive general liability policy?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
y advertising, including representing or giving a reasonable person the reason to believe that Chester's products are Halal or Kosher whether or not any component of a Chester's product may be considered Halal or Kosher.
-
- Insurance. You must obtain and maintain the types and amounts of insurance coverage appropriate in your market for the Restaurant's business activities, which must include at least $1 million per occurrence and $2 million in the annual aggregate of comprehensive general liability coverage, Workers' Compensation coverage providing benefits, as required by applicable law, and Employers' Liability coverage with a limit of not less than $1 million each accident, including occupational disease coverage. Your comprehensive general liability policy must name Chester's International, LLC as an additional insured and provide for a waiver of subrogation in favor of us. Your insurance will be primary and any insurance carried by us will be excess and non-contributory.
Certificates of Insurance evidencing the required insurance coverages and limits, and reflecting the waiver of subrogation, primary and non-contributing coverage and additional insured requirements described in this Paragraph shall be furnished to CHESTER'S prior to the Effective Date and annually thereafter. You shall give thirty (30) days' prior written notice to CHESTER'S of cancellat
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, franchisees are required to secure and maintain specific types and amounts of insurance coverage suitable for their restaurant's business activities. This insurance must include comprehensive general liability coverage with a minimum of $1 million per occurrence and $2 million in annual aggregate.
Chesters International, LLC must be named as an additional insured on the franchisee's comprehensive general liability policy. Furthermore, the policy must include a waiver of subrogation in favor of Chesters. The franchisee's insurance coverage will be considered primary, meaning that any insurance carried by Chesters will be excess and non-contributory.
Prior to the effective date of the franchise agreement and annually thereafter, franchisees must furnish Certificates of Insurance to Chesters as evidence of the required insurance coverages and limits. These certificates must reflect the waiver of subrogation, primary and non-contributing coverage, and additional insured requirements. Franchisees are also obligated to provide Chesters with thirty days' prior written notice of any cancellation, non-renewal, or material change in the coverage, scope, or amount of any policy. The Certificates of Insurance should list Chester's International, LLC, located at 1531 3rd Ave North, Suite 110, Birmingham, AL 35203, as the certificate holder.