For how many months must a Churchs Chicken sublessee's Business Interruption insurance cover?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- iii.
Sublessee shall, at Sublessee's expense, obtain and keep in force during the Term of this Sublease a policy of Business Interruption insurance covering a period of not less than six (6) months.
This insurance shall also cover at least six (6) month's sublease rent amount.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, a sublessee is required to maintain Business Interruption insurance for a minimum of six months. This insurance coverage must also extend to cover at least six months' worth of sublease rent.
This requirement ensures that in the event of unforeseen circumstances that disrupt the business, such as property damage, the sublessee has a financial safety net to continue meeting their rental obligations and cover other business expenses. The Business Interruption insurance helps mitigate the financial impact of unexpected closures or disruptions.
Prospective Churchs Chicken sublessees should factor in the cost of this insurance when assessing the overall financial investment required to operate a franchise. It is also important to understand the specific terms and conditions of the insurance policy to ensure it adequately covers potential risks and liabilities associated with the business.