Must Angry Chickz be named as an additional insured on all insurance policies?
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 required to name Angry Chickz as an additional insured party on certain insurance policies. Specifically, any contractors and subcontractors that an Angry Chickz franchisee engages must carry the same or greater insurance coverage and name both Angry Chickz and the franchisee as additional insured parties.
Furthermore, the FDD states that "all policies must name us as an additional named insured." This means that beyond just contractors and subcontractors, Angry Chickz itself must be listed as an additional named insured on the franchisee's insurance policies.
This requirement ensures that Angry Chickz has some protection against potential liabilities arising from the franchisee's operations. It is a fairly standard practice in franchising, as it allows the franchisor to mitigate risks associated with the actions of its franchisees. The franchisee is also required to obtain additional insurance coverage as they feel is necessary. All insurance policies must be issued by a company with a minimum A.M. Best's rating of A- at policy inception and authorized to do business in the state where the restaurant is located.