When is the insurance cost due to Angry Chickz if they obtain insurance on the franchisee's behalf?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Insurance | Cost of insurance plus our costs in obtaining the insurance for you. | Upon demand, see Remarks | If you do not obtain and maintain the requisite insurance coverage, we may, at our option, purchase such insurance for you must pay us the premiums and our costs in obtaining such insurance. |
Source: Item 6 — OTHER FEES1 (FDD pages 11–15)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, if a franchisee does not obtain and maintain the required insurance coverage, Angry Chickz has the option to purchase the insurance on behalf of the franchisee. In this case, the franchisee must pay Angry Chickz the cost of the insurance, along with any costs Angry Chickz incurs in obtaining the insurance.
The payment for this insurance and associated costs is due to Angry Chickz 'upon demand.' This means that Angry Chickz will request payment from the franchisee when they deem it necessary, rather than adhering to a fixed schedule.
This arrangement places the onus on the franchisee to proactively maintain adequate insurance coverage. Failure to do so not only allows Angry Chickz to procure insurance on their behalf but also requires the franchisee to make an immediate payment upon request, which could create a financial burden if not budgeted for.