Are Angry Chickz and its affiliates required to be named as additional insureds on the franchisee's insurance policies?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
see or any other person may assert. At Company's request, Franchisee shall contribute a reasonable amount toward the cost of the Intranet's maintenance, as imposed from time to time by Company. Such contribution shall be established by Company annually and shall be payable within 30 days of demand.
- 7.10 Insurance. Franchisee shall obtain and maintain at all times during the Term insurance coverage in the types and the minimum amounts of coverage set forth in the Manual(s). The current insurance requirements are set forth in attached Exhibit G. Each policy of insurance shall designate Company and its designated Affiliates as additional named insureds. All policies shall include a waiver of any rights of subrogation that Franchisee and its insurer(s) might otherwise have against Company and its Affiliates. Any deductibles or self-insured retentions in excess of $5,000 must be approved by Company, such approval not to be unreasonably withheld. In the event of damage to the Franchised Business, the proceeds of insurance shall be used to restore the Franchised Business to its original condition as soon as possible, unless Company has otherwise consented in writing to another use of the insurance proceeds. All insurance policies will be issued by a company or companies with a minimum A.M. Best's rating of A- at policy inception, and authorized to do business in the state in which the Franchised Business is located. Prior to opening the Franchised Business, and thereafter at Company's request, Franchisee shall provide Company certificates of insurance naming Company and its designated Affiliates as
additional named insureds (or the sole beneficiary in the case of life insurance). In addition, the certificates shall contain a provision requiring 30 days prior written notice to Company of any proposed cancellation, modificat
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, franchisees are required to include Angry Chickz and its designated affiliates as additional named insureds on their insurance policies. This requirement is in place throughout the entire term of the franchise agreement.
Prior to opening their Angry Chickz location, franchisees must provide certificates of insurance to Angry Chickz, which name Angry Chickz and its affiliates as additional named insureds. These certificates must also include a provision that requires Angry Chickz to receive 30 days' written notice before any cancellation, modification, or termination of the insurance policy.
If a franchisee fails to obtain or maintain the required insurance coverage, Angry Chickz has the option to procure the insurance on behalf of the franchisee without prior notice. In such cases, the franchisee is responsible for paying all premiums and costs associated with Angry Chickz obtaining the insurance. This ensures that Angry Chickz and its affiliates are protected even if the franchisee does not comply with the insurance requirements.