What is the minimum property damage liability limit 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 policy limits. These policies shall include, at a minimum, the following:
- (1) Comprehensive or Commercial General Liability Insurance including coverage for bodily injury, personal injury, contractual liability, advertising injury, fire damage, medical expenses, death and property damage, including Premises and Operations, independent contractors, blanket contractual liability, broad form property damage, products and completed operations and property damage on an occurrence basis with policy limits of not less than $1,000,000 per occurrence and $2,000,000 in the aggregate (except 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) or 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.
- (2) Comprehensive Automobile Liability Insurance, if applicable, covering owned, non-owne
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 certain minimum insurance coverages. Specifically, the franchisee must have Comprehensive or Commercial General Liability Insurance with coverage for property damage. This insurance must have policy limits of not less than $1,000,000 per occurrence and $2,000,000 in the aggregate, or 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.
In addition to the general liability insurance, Churchs Chicken franchisees must also maintain Comprehensive Automobile Liability Insurance, if applicable, covering owned, non-owned, and hired vehicles. This policy must have limits as follows: a combined single limit of $500,000 for bodily injury, death, and property damage per occurrence; or split liability limits of $500,000 for bodily injury per person; $500,000 for bodily injury per occurrence; and $250,000 for property damage.
Furthermore, franchisees are required to secure All Risk Property Insurance, written on an "All Risks" policy for fire and related perils, including floods and earthquakes where applicable. The limits of insurance must not be less than the full replacement value of the franchised restaurant, including its furniture, fixtures, equipment, inventory, and other tangible property on a Special Form. If the franchised location is in an area prone to geological phenomena, the all-risk property insurance must cover such risks.
Churchs Chicken 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. Franchisees will receive written notice of such modifications and must take prompt action to secure the additional coverage or higher policy limits.