Is it a requirement to name Chester's International, LLC as an additional insured on the insurance policies for a Chesters restaurant?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
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Insurance. You must have the types and amounts of insurance coverage appropriate in your market for the Restaurant's business activities, which must include at least One Million Dollars ($1,000,000) per occurrence and Two Million Dollars ($2,000,000) 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 One Million Dollars ($1,000,000) each accident, including occupational disease coverage. The policies must name Chester's International, LLC as an additional insured and provide for a waiver of subrogation in favor of CHESTER'S. Your insurance will be primary and any insurance carried by CHESTER'S will be excess and non-contribut
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–22)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, franchisees are required to name Chester's International, LLC as an additional insured on their insurance policies. This requirement is part of the broader insurance obligations that franchisees must meet to operate a Chesters restaurant.
Specifically, franchisees must maintain insurance coverage appropriate for their restaurant's business activities, including comprehensive General Liability coverage with a minimum of $1,000,000 per occurrence and $2,000,000 in annual aggregate. Additionally, they need to have Workers' Compensation coverage as required by law, and Employers' Liability coverage with a limit of not less than $1,000,000 per accident, including occupational disease coverage.
The insurance policies must also include a waiver of subrogation in favor of Chesters. This means that the insurance company will not be able to seek recovery from Chesters for any claims they pay out on behalf of the franchisee. The franchisee's insurance will be the primary coverage, while any insurance carried by Chesters will be excess and non-contributory, meaning Chesters's insurance only kicks in after the franchisee's insurance limits are exhausted.