What is the minimum general policyholder's rating required for insurance companies providing insurance under the Churchs Chicken sublease?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Insurance required by this Sublease shall be issued by companies holding a general policyholder's rating of at least "A" as set forth in the most current issue of Best's Insurance Guide and authorized to do business in the State in which the Premises are located.
If this publication is discontinued, then another insurance rating guide or service generally recognized as authoritative shall be substituted by Sublessor.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to the 2025 Churchs Chicken Franchise Disclosure Document, insurance companies providing coverage under the sublease must have a minimum general policyholder's rating. Specifically, the insurance must be issued by companies holding a rating of at least "A" as defined in the most recent edition of Best's Insurance Guide. This requirement ensures that the insurance provider is financially stable and capable of meeting potential claims.
If Best's Insurance Guide is discontinued, Churchs Chicken, acting as the sublessor, will substitute it with another insurance rating guide or service that is generally recognized as authoritative. This substitution ensures that there is always a reliable standard for assessing the financial strength of the insurance company.
This requirement is in place to protect both the sublessor and sublessee by ensuring that the insurance coverage is provided by a reputable and financially sound company. A prospective Churchs Chicken franchisee should confirm that their insurance provider meets this rating to comply with the sublease terms.