For Churchs Chicken, who is responsible for loss or damage arising from the Developer's development and operation of each Franchised Restaurant?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
have attended and completed, to Cajun's satisfaction, the Manager-in-Training Program and, if applicable, the New Franchisee Orientation Program (as described in the Franchise Agreement).
- (7) Cajun has determined that the Franchised Restaurant has been constructed and/or renovated and equipped substantially in accordance with the requirements of this Agreement and that Developer has trained a staff in accordance with the requirements of this Agreement.
- (8) Cajun has been furnished with copies of all insurance policies required by Section 8 or such other evidence of insurance coverage and payment of premiums as Cajun reasonably may request.
- (9) Developer has become a member of any purchasing cooperative required by Cajun.
- (10) Developer has implemented those customer satisfaction programs required by the Franchise Agreement.
- (11) If applicable, Developer has become a member of the Regional Advertising Cooperative (as described in the Franchise Agreement) for the DMA in which the Franchised Restaurant is located.
- D. Certified Training Restaurants. Within 90 days after Developer opens its first Franchised Restaurant and before Developer may begin construction on its second Franchised Restaurant as provided in Section 6.B., Developer, at its own expense, must establish its first Franchised Restaurant as a Certified Training Restaurant ("CTR") at which a designated training manager can conduct the MIT Program and other training programs for those designated employees of Franchisee and other Cajun franchisees whose franchised Church's Restaurants are located in the same DMA as the CTR.
8. INSURANCE
- A. Insurance Program. Developer, and not Cajun, shall be responsible for all loss or damage arising from or related to Developer'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, the developer, and not Churchs Chicken, is responsible for all loss or damage arising from the development and operation of each franchised restaurant. This includes any demands or claims related to loss, liability, personal injury, death, property damage, or expenses occurring on the premises or in connection with the development or operation of the franchised restaurant.
To mitigate these risks, Churchs Chicken requires the developer to maintain insurance coverage throughout the development term. This insurance must cover liabilities caused by or occurring in connection with the development or operation of each franchised restaurant. The insurance policies must be satisfactory to Churchs Chicken and comply with the standards, specifications, coverages, and limits set forth in the manual or provided in writing to the developer.
The minimum insurance requirements include Comprehensive or Commercial General Liability Insurance with 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. Churchs Chicken also requires to be named as an additional insured for General Liability and loss payee for property policy to the extent each has an insurable interest.
This arrangement is typical in franchising, where franchisees (or developers in this case) assume responsibility for their business's operational risks, while franchisors like Churchs Chicken focus on maintaining brand standards and providing support. Prospective developers should carefully review the required insurance coverage and ensure they can obtain adequate policies to protect their investment and operations.