What is the minimum aggregate policy limit for Comprehensive or Commercial General Liability Insurance required for a Churchs Chicken franchise?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
be named as an additional insured on all policies except workers compensation to the extent each has an insurable interest.
- B. Minimum Insurance Requirements. Franchisee shall 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 to Franchisee in writing. Cajun may
reasonably increase the minimum coverage required and require different or additional kinds of insurance to reflect inflation, changes in standards of liability, higher damage awards or other relevant changes in circumstances. Franchisee shall receive notice of such modifications and shall take prompt action to secure the additional coverage or higher poli
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, franchisees are required to maintain Comprehensive or Commercial General Liability Insurance. This insurance must include coverage for bodily injury, personal injury, death, and property damage. The coverage extends to various aspects such as premises and operations, independent contractors, blanket contractual liability, broad form property damage, and products and completed operations.
The minimum policy limits required are $1,000,000 per occurrence and $2,000,000 in the aggregate. However, there are exceptions for fire damage and medical expense coverages, which may have lower limits. Specifically, the limit for fire damage is not less than $50,000 for one fire, and the limit for medical expenses is not less than $5,000 for one person. Alternatively, franchisees can opt for 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.
It is important for prospective Churchs Chicken franchisees to understand these insurance requirements as they represent a significant ongoing cost of doing business. Franchisees must ensure they obtain the necessary coverage from an insurance company that meets Churchs Chicken's standards. Additionally, Churchs Chicken may increase the minimum coverage required to reflect inflation, changes in standards of liability, higher damage awards, or other relevant changes in circumstances, so franchisees need to stay informed of any such modifications.