What perils must be covered by the property insurance for an Angry Chickz franchise?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- property insurance providing coverage for direct physical loss or damage to real and personal property (as well as electronic equipment such as point of sales, menu board, and other equipment) for all risk perils, including the perils of flood and earthquake that values property (real and personal) on a new replacement cost basis without deduction for depreciation and the amount of insurance shall not be less than 90% of the full replacement value of the Franchised Business, its furniture, fixtures, equipment, and stock (real and personal property);
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 18–23)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, franchisees must secure property insurance that covers direct physical loss or damage to real and personal property. This insurance must cover all risk perils, specifically including flood and earthquake. The insurance should value the property (both real and personal) on a new replacement cost basis, without any deduction for depreciation.
The amount of insurance coverage must be no less than 90% of the full replacement value of the Angry Chickz franchised business. This includes its furniture, fixtures, equipment, and stock, encompassing both real and personal property.
This requirement ensures that in the event of a disaster like a flood or earthquake, the Angry Chickz franchisee has sufficient coverage to replace damaged or lost property at its current value, helping them to recover and resume operations more quickly. Franchisees should carefully assess the replacement value of their assets to ensure they meet the 90% threshold and consult with insurance professionals to obtain appropriate coverage.