Can Cajun increase the minimum insurance coverage required for a Churchs Chicken franchise?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchised Restaurant is located.
- D. Certified Training Restaurants. Within 90 days after Developer opens its first Franchised Restaurant and before Developer may begin construction on its second Franchised Restaurant as provided in Section 6.B., Developer, at its own expense, must establish its first Franchised Restaurant as a Certified Training Restaurant ("CTR") at which a designated training manager can conduct the MIT Program and other training programs for those designated employees of Franchisee and other Cajun franchisees whose franchised Church's Restaurants are located in the same DMA as the CTR.
8. INSURANCE
- A. Insurance Program. Developer, and not Cajun, shall be responsible for all loss or damage arising from or related to Developer's development and operation of each Franchised Restaurant, and for all demands or claims with respect to any loss, liability, personal injury, death, property damage, or expense whatsoever occurring upon the premises of, or in connection with the development or operation of, each Franchised Restaurant. Developer shall maintain in full force and effect throughout the Development Term that insurance which Developer determines is necessary or appropriate for liabilities caused by or occurring in connection with the development or operation of each Franchised Restaurant whi
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, Cajun has the ability to reasonably increase the minimum insurance coverage required for franchisees. Cajun may also require different or additional kinds of insurance. These adjustments can be made to reflect factors such as inflation, changes in liability standards, higher damage awards, or other relevant changes in circumstances.
Churchs Chicken franchisees will receive written notice of any such modifications to the insurance requirements and are expected to take prompt action to secure the additional coverage or higher policy limits. Franchisees are responsible for ensuring they meet these updated requirements in a timely manner.
For developers, the minimum insurance requirements include Comprehensive or Commercial General Liability Insurance with policy limits of not less than $1,000,000 per occurrence and $2,000,000 in the aggregate, or split liability limits of $1,000,000 for bodily injury per person, $1,000,000 for bodily injury per occurrence, and $500,000 for property damage. Franchisees must obtain all insurance policies from an insurance company or companies satisfactory to Cajun, in compliance with the standards, specifications, coverages, and limits set forth in the Manual or otherwise provided in writing.