Are Angry Chickz franchisees allowed to obtain additional insurance coverage beyond the minimum requirements?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- any other insurance coverage that is required by federal, state, or municipal law; and
- any contractors and subcontractors that you engage must carry the same amount or greater coverage and name the us and you as additional insured parties.
All policies must name us as an additional named insured. You may obtain additional insurance coverage as you feel necessary. You may purchase your insurance from any carrier subject to our approval, not to be unreasonably withheld. 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 Restaurant is located.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 18–23)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, franchisees are permitted to obtain additional insurance coverage beyond the minimum requirements. The FDD states, "You may obtain additional insurance coverage as you feel necessary." This provides franchisees with the flexibility to assess their specific risks and needs and to secure extra protection beyond what Angry Chickz mandates.
While Angry Chickz allows franchisees to obtain additional insurance, all insurance policies must name Angry Chickz as an additional named insured. Furthermore, franchisees must purchase their insurance from a carrier that Angry Chickz approves, though such approval will not be unreasonably withheld. The insurance company must also have a minimum A.M. Best's rating of A- at the policy's inception and be authorized to conduct business in the state where the restaurant is located.
This policy benefits franchisees by allowing them to tailor their insurance coverage to their unique circumstances, potentially mitigating risks specific to their location or operations. However, franchisees should carefully consider the costs of additional coverage and ensure that any additional policies comply with Angry Chickz's requirements regarding approved carriers and minimum ratings.