Is Employment Practice Liability Insurance required for Churchs Chicken franchisees, and if not, is it recommended?

According to Churchs Chicken's 2025 Franchise Disclosure Document, Employment Practice Liability Insurance is not explicitly required, but it is highly recommended. Specifically, the FDD states that Employment Practice Liability Insurance containing a third-party endorsement is highly recommended for franchisees.

While not mandatory, obtaining this insurance can protect a Churchs Chicken franchisee from potential liabilities arising from employment-related claims. These claims could include allegations of discrimination, wrongful termination, harassment, or other employment-related issues. The third-party endorsement broadens the coverage to include claims made by parties other than the franchisee's employees, offering a more comprehensive level of protection.

Franchisees should carefully consider the recommendation and evaluate the potential risks associated with employment practices. Consulting with an insurance professional to determine the appropriate level of coverage is advisable. Even though it is not mandated, having Employment Practice Liability Insurance can provide significant financial protection and peace of mind for a Churchs Chicken franchisee.