What are the minimum policy 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, covering aspects like premises and operations, independent contractors, blanket contractual liability, broad form property damage, products and completed operations, and property damage on an occurrence basis.
The policy must have minimum limits of $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 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/or 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 must take prompt action to secure the additional coverage or higher policy limits. Franchisees must obtain all insurance policies from an insurance company or companies satisfactory to Churchs Chicken in compliance with the standards, specifications, coverages and limits set forth in the Manual or otherwise provided to Franchisee in writing.