What is the minimum liability limit for commercial umbrella liability insurance required for an Angry Chickz franchise, including foodborne illness coverage, for Angry Chickz?
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 includ
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 umbrella liability insurance with a total liability limit of at least $5,000,000. This insurance must include coverage for foodborne illnesses.
This requirement means that an Angry Chickz franchisee needs to secure an insurance policy that provides an extra layer of protection beyond their general liability coverage. The $5,000,000 limit is designed to cover significant potential liabilities, especially those related to foodborne illnesses, which can result in substantial claims and legal expenses.
For a prospective franchisee, this insurance requirement represents a significant ongoing cost of doing business. It is important to obtain quotes from multiple insurance providers to ensure competitive rates and adequate coverage. Failing to maintain the required insurance coverage could result in a breach of the franchise agreement and potential termination of the franchise.