From what source should a Churchs Chicken franchisee obtain insurance policies?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
maintain in full force and effect that insurance which Franchisee determines is necessary or appropriate for liabilities caused by or occurring in connection with the development and operation of the Franchised Restaurant, which shall include, at a minimum, insurance policies of the kinds, and in the amounts required by Section 12.B. Franchisee shall cause Cajun**,** Cajun Operating Company, Cajun Holdco LLC, Church's Holding Corp., Cajun Restaurants LLC, Cajun Realty LLC, Cajun Funding Corp., and any additional entity with an insurable interest designated by Cajun to be named as additional insureds on all policies except workers compensation.
- A. any entity with an insurable interest designated by Cajun to 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.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, franchisees are responsible for securing their own insurance policies. Churchs Chicken requires franchisees to obtain insurance from a company or companies that are satisfactory to them, and the insurance policies must comply with the standards, specifications, coverages, and limits outlined in the manual or provided in writing.
The brand 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 notice of such modifications and must take prompt action to secure the additional coverage or higher policy limits.
All insurance policies must be written by an insurance company that has received and maintains an "A" or better rating by the latest edition of Best's Insurance Rating Service. Unless otherwise approved by Churchs Chicken in writing, no insurance policy can have a deductible exceeding $5,000, and the franchisee's co-insurance under any insurance policy must be 80% or greater. Franchisees cannot self-insure any of the required insurance coverages without prior written consent from Churchs Chicken.