What is the minimum limit for Employers' Liability coverage each accident that a Chesters franchisee must maintain?
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 maintain Employers' Liability coverage with a limit of not less than $1 million for each accident, including occupational disease coverage. This insurance requirement is part of a broader set of insurance obligations that Chesters imposes on its franchisees to protect the business and brand.
In practical terms, this means a prospective Chesters franchisee needs to secure an insurance policy that meets or exceeds this minimum coverage. The franchisee is responsible for obtaining and maintaining the types and amounts of insurance coverage appropriate in their market for the Restaurant's business activities. This coverage protects the franchisee from potential financial liabilities arising from employee injuries or illnesses sustained on the job.
Chesters also requires that the comprehensive general liability policy names Chester's International, LLC as an additional insured and provides for a waiver of subrogation in favor of Chesters. Furthermore, franchisees must provide Certificates of Insurance evidencing the required coverages and limits to Chesters prior to the Effective Date and annually thereafter. Franchisees must also give Chesters thirty (30) days' prior written notice of cancellation, non-renewal, or material change in coverage, scope, or amount of any policy. These stipulations ensure that Chesters is protected and informed about the franchisee's insurance status.