What is the minimum aggregate limit for commercial general liability insurance required for an Angry Chickz franchise?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
resently, our minimum insurance requirements are as follows:
You must obtain and maintain the at least following insurance:
- commercial general liability insurance, written on an occurrence basis, extended to include contractual liability, products and completed operations, and personal and advertising injury (with full assault and battery coverage), with a combined bodily injury and property damage limit of at lea
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 must maintain commercial general liability insurance with a minimum aggregate limit of $2,000,000. This insurance must be written on an occurrence basis and extended to include contractual liability, products and completed operations, and personal and advertising injury, including full assault and battery coverage.
In practical terms, this means that an Angry Chickz franchisee needs to secure a commercial general liability insurance policy that can cover up to $2,000,000 in total claims during the policy period. This coverage is designed to protect the franchisee from a range of potential liabilities, such as injuries occurring on the property, damages caused by the franchisee's products or services, and claims related to advertising or personal injury. The inclusion of assault and battery coverage is particularly important in the restaurant business, where altercations can occur.
The requirement to have this specific type and amount of insurance is a standard practice in franchising, as it protects both the franchisee and the franchisor from significant financial losses due to unforeseen events. Franchisees must ensure that their insurance policies meet all the requirements outlined in the FDD and the franchise agreement. Additionally, Angry Chickz requires that they are named as an additional insured party on the policy.
It is important for prospective Angry Chickz franchisees to factor in the cost of this insurance when evaluating the overall investment required to start and operate the franchise. They should consult with insurance professionals to obtain quotes and ensure they understand the terms and conditions of the required coverage. Furthermore, the franchisee must ensure that the insurance policies are issued by companies with a minimum A.M. Best's rating of A- and authorized to do business in the state where the restaurant is located.