Can Bb.Q Chicken require additional insurance coverages in the future?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
eunder for events having occurred during the term of this Agreement) at your expense, an insurance policy or policies protecting you and us, our successors and assigns, our officers, directors, shareholders, partners, agents, representatives, independent contractors and employees of each of them against any demand or claim with respect to personal injury, death or property damage, or any loss, liability or expense whatsoever arising or occurring upon or in connection with the Franchised Business.
- 12.2 Such policy or policies shall be written by a responsible carrier or carriers reasonably acceptable to us and duly licensed for the state in which the Franchised Business is located, shall be written on an "occurrence" basis, and shall include, at a minimum (except as additional coverages and higher policy limits may reasonably be specified by us from time to time), in accordance with standards and specifications set forth in writing, the following: (1) comprehensive general liability, including broad form contractual liability, employment practices coverage, broad form property damage, personal injury, facilities, completed operations, products liability, automobile (covering all vehicles used in the delivery of products from the Franchised Business, including the Food Truck and owned, hired and non-owned vehicles), fire legal liability and liquor liability in the amount of Five Million Dollars ($5,000,000); (2) all risks coverage for full repair and replacement value of all of the equipment, fixtures and supplies used in your Franchised Business with an agreed amount endorsement equal to one hundred percent (100%) of the property's value; (3) employer's liability, workers' compensation, dram shop, and any other insurance that may be required by statute or rule of the stat
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, Bb.Q Chicken can specify additional insurance coverage requirements for franchisees in the future. The FDD states that the franchisee must maintain certain insurance policies, including comprehensive general liability, all risks coverage, employer's liability, business interruption insurance, and any insurance required by the restaurant premises lease.
Bb.Q Chicken retains the right to specify additional coverages and higher policy limits as deemed reasonable. These policies must be written by a responsible carrier acceptable to Bb.Q Chicken and include a waiver of subrogation in favor of Bb.Q Chicken and its affiliates. Furthermore, Bb.Q Chicken, its affiliates, and their personnel must be named as additional insureds on the policies, with a provision that their interests remain unaffected by any breach of policy provisions by the franchisee.
This means that a Bb.Q Chicken franchisee needs to be prepared to adjust their insurance coverage and policy limits during the franchise term if Bb.Q Chicken deems it necessary. The franchisee is responsible for ensuring that Bb.Q Chicken receives certificates of insurance at least ten days before the opening date and thirty days before any policy's expiration. Failure to comply with these insurance requirements could result in a breach of the franchise agreement.