Under what circumstances might Angry Chickz purchase insurance for a franchisee?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Insurance | Cost of insurance plus our costs in obtaining the insurance for you. | Upon demand, see Remarks | If you do not obtain and maintain the requisite insurance coverage, we may, at our option, purchase such insurance for you must pay us the premiums and our costs in obtaining such insurance. |
Source: Item 6 — OTHER FEES1 (FDD pages 11–15)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, Angry Chickz may purchase insurance for a franchisee if the franchisee fails to obtain and maintain the required insurance coverage. If this occurs, Angry Chickz has the option to buy the necessary insurance.
In such a case, the franchisee is responsible for covering the cost of the insurance, including the premiums and any expenses Angry Chickz incurs in obtaining the insurance. This ensures that the Angry Chickz franchise location remains compliant with insurance requirements, even if the franchisee does not proactively maintain their own coverage.
This policy protects Angry Chickz from potential liabilities arising from underinsured franchise locations. While it offers a safety net, franchisees should prioritize securing and maintaining their own insurance to avoid additional costs and potential intervention from Angry Chickz.