Who is responsible for loss or damage arising from the development and operation of a Churchs Chicken Franchised Restaurant?

According to Churchs Chicken's 2025 Franchise Disclosure Document, the franchisee, referred to as the 'Developer,' is responsible for all loss or damage related to the development and operation of their franchised restaurant. This includes any demands or claims related to loss, liability, personal injury, death, property damage, or any expenses occurring on the premises or in connection with the restaurant's development or operation.

This means that as a Churchs Chicken franchisee, you will bear the financial risk for any incidents or accidents that occur at your restaurant. It is your responsibility to secure and maintain adequate insurance coverage to protect against these potential liabilities. The specific types and amounts of insurance coverage are determined by the franchisee based on their assessment of necessary or appropriate coverage.

This allocation of risk is standard practice in franchising, where franchisees typically assume responsibility for the day-to-day operations and any associated liabilities. While Churchs Chicken sets the standards and provides support, the franchisee is the independent business owner and operator. Therefore, it is crucial for prospective franchisees to carefully evaluate their insurance needs and ensure they have sufficient coverage to protect their investment and personal assets.