What amount of loss reserves did Chicken Guy have?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
Commission Expires May 24,
Atlantic Specialty Insurance Company Period Ended 12/31/2020
Dollars displayed in thousands
| Admitted Assets | Liabilities and Surplus | ||
|---|---|---|---|
| Imestments: | Liabilities | ||
| Bonds | $ 1,500,023 | Loss Reserves | $ 878,884 |
| Preferred Stocks | 2 | Loss Adjustment Expense Reserves | 272,666 |
| Common Stocks | 775,825 | Total Loss & LAE Reserves | 1,151,550 |
| Mortgage Loans | • | ||
| Real Estate | Unearned Premium Reserve | 593,461 | |
| Contract Loans | 2 | Total Reinsurance Liabilities | 13,171 |
| Derivatives | * | Commissions, Other Expenses, and Taxes due | 54,683 |
| Cash, Cash Equivalents & Short Term Investments | 147,406 | Derivatives | |
| Other Investments | 23,375 | Payable to Parent, Subs or Affiliates | |
| Total Cash & Investments | 2,446,629 | All Other Liabilities | 237,942 |
| Premiums and Considerations Due | 276,120 | Total Liabilities | 2,050,707 |
| Reinsurance Recoverable | 59,375 | - | |
| Receivable from Parent, Subsidiary or Affiliates | 29,538 | Capital and Surplus | |
| All Other Admitted Assets | 62,330 | Common Capital Stock Preferred Capital Stock | 9,001 |
| Total Admitted Assets | 2 |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–46)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, the company has specific financial reserves allocated for potential losses. The document states that the loss reserves amount to $878,884. Additionally, there are loss adjustment expense reserves of $272,666, bringing the total loss and LAE reserves to $1,151,550. These reserves are part of the company's liabilities. This indicates the financial planning and risk management practices of Chicken Guy.
For a prospective franchisee, understanding these figures is crucial as it provides insight into the financial stability and preparedness of Chicken Guy to handle unforeseen losses. The existence of these reserves suggests that Chicken Guy is proactive in managing financial risks, which can be a positive indicator for potential investors. It demonstrates that the company has set aside funds to cover potential liabilities, which could protect franchisees from the impact of significant financial losses.
It's important to note that these reserves are part of the overall liabilities and surplus structure of the company. The total liabilities are listed as $2,050,707, with a total admitted assets of $2,873,992. Reviewing the complete financial picture, including assets, liabilities, and surplus, provides a comprehensive understanding of the financial health of Chicken Guy. Prospective franchisees should consider these figures in conjunction with other aspects of the franchise opportunity to assess the overall risk and potential return on investment.