What are the minimum coverage limits for Comprehensive or Commercial General Liability Insurance required for a Churchs Chicken franchise?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
eloper's development and operation of each Franchised Restaurant, and for all demands or claims with respect to any loss, liability, personal injury, death, property damage, or expense whatsoever occurring upon the premises of, or in connection with the development or operation of, each Franchised Restaurant. Developer shall maintain in full force and effect throughout the Development Term that insurance which Developer determines is necessary or appropriate for liabilities caused by or occurring in connection with the development or operation of each Franchised Restaurant whi
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 of the business, including premises and operations, independent contractors, blanket contractual liability, broad form property damage, products and completed operations, and property damage.
The minimum policy limits for this insurance are $1,000,000 per occurrence and $2,000,000 in the aggregate. However, there are specific exceptions for fire damage and medical expense coverages, which may have lower limits of not less than $50,000 for one fire and $5,000 for one person, respectively. 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.
Churchs Chicken may 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. Franchisees will receive written notice of such modifications and are expected to promptly secure the additional coverage or higher policy limits. It is important for prospective franchisees to factor these insurance costs into their overall investment and operational expenses.