factual

What is the split liability limit for property damage for Comprehensive or Commercial General Liability Insurance for a Churchs Chicken franchise?

Churchs_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

eloper'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 which shall include, at a minimum, insurance policies of the kinds, and in the amounts, required by Section 8.B. Developer shall cause Cajun and any entity with an insurable interest designated by Cajun be named as an additional insured for General Liability and loss payee for property policy to the extent each has an insurable interest.

  • B. Minimum Insurance Requirements. Developer 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 Developer 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. Developer shall receive written notice of such modifications and shall take prompt action to secure the additional coverage or higher policy limits. These policies shall include, at a minimum, the following for each Franchised Restaurant:
  • (1) Comprehensive or Commercial General Liability Insurance, including coverage for bodily injury, personal injury, death and property damage, including Premises and Operations, independent contractors, blanket contractual liability, broad form property damage, products and completed operations and property damage on an occurrence basis 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.

Source: Item 23 — RECEIPT (FDD pages 68–406)

What This Means (2025 FDD)

According to Churchs Chicken's 2025 Franchise Disclosure Document, franchisees must maintain Comprehensive or Commercial General Liability Insurance. This insurance covers bodily injury, personal injury, death, and property damage. The policy can be structured with either an aggregate limit or split liability limits.

If a Churchs Chicken franchisee chooses to have split liability limits, the policy must cover $1,000,000 for bodily injury per person and $1,000,000 for bodily injury per occurrence. The limit for property damage is $500,000.

Churchs Chicken 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 written notice of such modifications and shall take prompt action to secure the additional coverage or higher policy limits.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.