What is the minimum coverage limit for All Risk Property Insurance for a Churchs Chicken franchise?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) All Risk Property Insurance, written on an "All Risks" policy for fire and related peril (including floods and earthquakes where applicable) with limits of insurance of not less than the full replacement value of the Franchised Restaurant, and its furniture, fixtures, equipment, inventory and other tangible property on Special Form with no co-insurance.
If the Franchised Location is in an area prone to geological phenomena, including, but not limited to, wind, sinkholes, mine subsidence, earthquakes, hurricanes, tornadoes, or floods, the all-risk property insurance shall cover such risks.
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 All Risk Property Insurance. This insurance must be written on an "All Risks" policy covering fire and related perils, including floods and earthquakes where applicable.
The minimum coverage limit must not be less than the full replacement value of the franchised restaurant. This includes furniture, fixtures, equipment, inventory, and other tangible property, all on a Special Form with no co-insurance.
Furthermore, if the Churchs Chicken franchised location is in an area prone to geological phenomena such as wind, sinkholes, mine subsidence, earthquakes, hurricanes, tornadoes, or floods, the all-risk property insurance must cover these specific risks. This ensures that the franchisee is adequately protected against potential losses due to a wide range of hazards, reflecting the full replacement value of the restaurant and its contents.