What is the minimum per occurrence amount of comprehensive general liability coverage a Chesters franchisee must obtain?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
's products in any 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' 2025 Franchise Disclosure Document, franchisees must secure and maintain specific types and amounts of insurance coverage suitable for their restaurant's business activities. This includes a minimum of $1 million per occurrence for comprehensive general liability coverage and $2 million in annual aggregate.
In addition to the general liability coverage, franchisees are also required to have Workers' Compensation coverage that provides benefits as mandated by applicable law. They must also maintain Employers' Liability coverage with a limit of not less than $1 million for each accident, including occupational disease coverage.
Chesters International, LLC must be named as an additional insured on the comprehensive general liability policy, and 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. Franchisees must provide Certificates of Insurance to Chesters before the Effective Date and annually thereafter, evidencing the required coverages, limits, waiver of subrogation, and additional insured status. Furthermore, franchisees are required 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.