When is Automobile Liability insurance required for a Chicken Guy franchise?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
plicable) with limits of insurance of not less than the full replacement value of the Franchised Restaurant, and its furniture, fixtures, equipment, inventory and other tangible property.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, Automobile Liability insurance is required if the franchisee is engaged in any delivery operations. The coverage must be on a Symbol 1 (any auto) basis and in the amount of $1,000,000 per occurrence on any auto.
This means that if a Chicken Guy franchisee chooses to offer delivery services, they must obtain automobile liability insurance with the specified coverage. The "Symbol 1 (any auto) basis" means the insurance covers any vehicle used for delivery, whether owned, hired, or non-owned. The $1,000,000 per occurrence limit provides a significant level of financial protection in the event of an accident involving a delivery vehicle.
In addition to Automobile Liability insurance, Chicken Guy franchisees are required to maintain other insurance policies, including Commercial General Liability Insurance, All Risks Property Insurance, and Workers' Compensation. The specific requirements for these policies, including coverage amounts and terms, are detailed in Item 22 of the FDD. Franchisees must ensure they obtain and maintain all required insurance coverage throughout the term of their franchise agreement.
It is important for prospective Chicken Guy franchisees to carefully review the insurance requirements outlined in Item 22 of the FDD and consult with an insurance professional to ensure they obtain adequate coverage. Failure to maintain the required insurance could result in the franchisor procuring insurance on behalf of the franchisee and charging the cost to the franchisee, or potentially a breach of the franchise agreement.