Who should be named as additional insureds on a Churchs Chicken sublessee's general liability policy?

According to Churchs Chicken's 2025 Franchise Disclosure Document, a sublessee's general liability policy must name the sublessor, master landlord, and their designees as additional insureds. This requirement ensures that these parties are protected under the sublessee's insurance coverage for liabilities arising from the operation of the premises. The sublessor is also the sole certificate holder for these policies.

This requirement is in place to protect the sublessor and master landlord from potential financial losses due to lawsuits or claims arising from the sublessee's operations. By being named as additional insureds, they can access the sublessee's insurance coverage to cover legal costs, settlements, or judgments. This arrangement is a common practice in subleasing agreements to mitigate risks for the property owner and the primary leaseholder.

Furthermore, the Churchs Chicken franchisee, as a sublessee, must provide certificates of insurance to the sublessor before occupying the premises and upon annual renewal. The property policy should name the sublessor and its lender as loss payees. The franchisee also has the option to use a blanket policy, provided that the sublessor's interests are fully protected as if a separate policy were in place. These stipulations ensure that adequate insurance coverage is maintained throughout the term of the sublease, protecting all involved parties.