What is the minimum annual aggregate amount of comprehensive general liability coverage a Chesters franchisee must obtain?
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.
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- 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 genera
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, franchisees must secure and maintain appropriate insurance coverage for their restaurant's business activities. This includes a minimum of $1 million per occurrence and $2 million in the annual aggregate of comprehensive general liability coverage. Additionally, franchisees must have Workers' Compensation coverage as required by law, and Employers' Liability coverage with a limit of not less than $1 million per accident, including occupational disease coverage.
The comprehensive general liability policy must specifically name Chester's International, LLC as an additional insured and include a waiver of subrogation in favor of Chesters. The franchisee's insurance policy will be the primary coverage, meaning that any insurance carried by Chesters will be excess and non-contributory.
Chesters requires franchisees to provide Certificates of Insurance as evidence of the required coverages and limits before the Effective Date of the franchise agreement and annually thereafter. These certificates must reflect the waiver of subrogation, primary and non-contributing coverage, and additional insured requirements. Franchisees are also obligated to give Chesters 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 at their Birmingham, AL address as the certificate holder.