When must a Churchs Chicken Developer obtain the required insurance relative to the construction of their first Franchised Restaurant?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Developer shall obtain the insurance required by this Agreement no later than 15 days before the date on which the construction of Developer's first Franchised Restaurant developed pursuant to this Agreement is commenced.
Developer shall not open any Franchised Restaurant for business prior to Cajun's receipt of satisfactory evidence that all insurance required by this Agreement is in effect.
Upon obtaining such insurance, and on each policy renewal date thereafter, Developer shall submit evidence of satisfactory insurance and proof of payment for such insurance to Cajun.
At least once per year, Developer shall submit to Cajun a copy of its current year insurance certificate.
Developer shall use its best efforts to coordinate the policy effective dates for all of Developer's required coverages for all of the Franchised Restaurants to have one similar policy period.
The evidence of insurance shall include a statement by the insurer that the policy or policies will not be canceled or materially altered without at least 30 days' prior written notice to Cajun.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, a Developer must obtain the required insurance no later than 15 days before construction begins on their first franchised restaurant. Churchs Chicken requires that the franchisee provide evidence of satisfactory insurance and proof of payment to Cajun upon obtaining the insurance and on each policy renewal date thereafter.
Churchs Chicken also requires that the insurance policies be written by a company with an "A" or better rating from Best's Insurance Rating Service. Unless Cajun approves otherwise in writing, the insurance policy should not have a deductible exceeding $5,000, and the Developer's co-insurance must be 80% or greater. All liability insurance policies must be written on an "occurrence" policy form.
The franchisee is responsible for any deductibles from insured claims. The franchisee cannot self-insure any required coverage or opt out of workmen's compensation laws without Cajun's written consent. The franchisee's obligation to maintain insurance is not limited by any insurance Cajun may have, nor does it relieve the franchisee of liability under the indemnity provisions in Section 18 of the agreement.