What condition must be met if a Churchs Chicken sublessee uses a blanket policy for insurance?

According to Churchs Chicken's 2025 Franchise Disclosure Document, a sublessee has the option to use a blanket insurance policy to meet their insurance obligations. However, there is a condition that must be met. The interests of the sublessor must be as fully protected as they would be if the blanket policy option was not in place. This means the blanket policy must provide equivalent coverage and protection to the sublessor as if a separate, specific policy were obtained for the subleased premises.

In practical terms, a Churchs Chicken franchisee who is a sublessee needs to ensure that their existing blanket policy adequately covers the sublessor's interests. This might involve amending the blanket policy with a rider or endorsement to specifically include the sublessor and ensure they are protected against potential losses related to the subleased property. The franchisee should carefully review the terms of their blanket policy with their insurance provider to confirm that it meets this requirement.

This condition is important because it ensures that the sublessor's financial interests are safeguarded, regardless of whether the sublessee chooses to use a blanket policy or a separate insurance policy. Failing to meet this condition could result in the sublessee being required to obtain a separate insurance policy, which could increase their overall insurance costs. Therefore, it is crucial for prospective Churchs Chicken franchisees to understand and comply with this requirement to avoid potential complications and ensure they are adequately insured.