Under what circumstances is Builders All Risk Insurance required for a Churchs Chicken franchise?

According to Churchs Chicken's 2025 Franchise Disclosure Document, Builders All Risk Insurance is required in specific scenarios related to the physical structure of the franchised restaurant. Specifically, this insurance is mandated in connection with any construction, renovation, refurbishment, or remodeling of the Franchised Restaurant. This requirement ensures that the franchisee is protected against potential losses or damages that may occur during these activities.

Furthermore, the FDD clarifies that in connection with new construction or substantial renovation, refurbishment, or remodeling of the Franchised Restaurant, the franchisee must also maintain performance and completion bonds. These bonds must be in forms and amounts, and written by carrier(s), reasonably satisfactory to Cajun, which is likely Churchs Chicken's parent company or an affiliated entity. This stipulation adds an extra layer of security, ensuring that projects are completed according to agreed-upon standards and timelines.

In practical terms, this means that a Churchs Chicken franchisee needs to secure Builders All Risk Insurance whenever they are building a new restaurant location or making significant changes to an existing one. This insurance coverage is essential for mitigating financial risks associated with construction and renovation projects, protecting the franchisee's investment in the property. Additionally, the requirement for performance and completion bonds for new construction or substantial renovation projects underscores the importance of adhering to quality and schedule standards set by the franchisor.