What is the requirement regarding waivers of subrogation in Angry Chickz franchisee's insurance policies?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
see or any other person may assert. At Company's request, Franchisee shall contribute a reasonable amount toward the cost of the Intranet's maintenance, as imposed from time to time by Company. Such contribution shall be established by Company annually and shall be payable within 30 days of demand.
- 7.10 Insurance. Franchisee shall obtain and maintain at all times during the Term insurance coverage in the types and the minimum amounts of coverage set forth in the Manual(s). The current insurance requirements are set forth in attached Exhibit G. Each policy of insurance shall designate Company and its designated Affiliates as ad
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, all insurance policies obtained by the franchisee must include a waiver of any rights of subrogation that the franchisee and its insurer(s) might otherwise have against Angry Chickz and its affiliates. This means that if Angry Chickz is responsible for a loss covered by the franchisee's insurance, the insurance company cannot sue Angry Chickz to recover the amount they paid out on the claim.
This requirement protects Angry Chickz from potential lawsuits by the franchisee's insurance company. It ensures that Angry Chickz will not be held liable for damages to the franchisee's business if those damages are covered by the franchisee's insurance policy. This is a fairly standard requirement in franchise agreements, as it shields the franchisor from indirect claims.
Additionally, any deductibles or self-insured retentions exceeding $5,000 must be approved by Angry Chickz, with such approval not to be unreasonably withheld. This provision gives Angry Chickz some control over the level of risk the franchisee assumes, ensuring that it aligns with the franchisor's risk management strategy. The franchisee must also name Angry Chickz and its designated affiliates as additional named insureds on each policy.