Who should be named as loss payee on a Churchs Chicken sublessee's property policy?

According to Churchs Chicken's 2025 Franchise Disclosure Document, the sublessee's property insurance policy must name both the Sublessor and its Lender as the loss payees. Additionally, the sublessor is to be the sole certificate holder. This requirement ensures that in the event of any property damage, insurance proceeds are directed to the parties with a direct financial interest in the property, namely the sublessor (Cajun Realty LLC) and their lender.

This stipulation protects the sublessor's investment and ensures that any damages to the property are properly addressed, as the insurance payments will be managed by them and their lender. For a prospective Churchs Chicken franchisee who is subleasing a property, this means they must ensure their insurance policy is correctly set up to reflect these loss payees. Failure to comply with this requirement could result in a breach of the sublease agreement.

Furthermore, the Churchs Chicken franchisee is obligated to deliver certificates evidencing the required insurance policies to the sublessor before occupying the premises and upon each annual renewal. The insurance policies must be issued by companies with a general policyholder's rating of at least "A" as per Best's Insurance Guide. The franchisee must also ensure that the sublessor receives at least thirty days' written notice before any policy is canceled or modified, providing an additional layer of protection for the sublessor.