Is Automobile Liability insurance required for a Chicken Guy franchise, and if so, under what circumstances and what are the coverage requirements?

According to Chicken Guy's 2025 Franchise Disclosure Document, Automobile Liability insurance is required if a franchisee engages 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. Additionally, the franchisee must also maintain umbrella or excess liability insurance in the amount of $3,000,000 per occurrence and $3,000,000 in annual aggregate that includes automobile liability coverage as underlying policies.

Chicken Guy requires that all insurance policies be written by an insurance company satisfactory to them and comply with the standards, specifications, coverages, and limits set forth in the manual or otherwise provided to the franchisee in writing. Chicken Guy may reasonably increase the minimum required coverage and require different or additional kinds of insurance to reflect inflation, changes in standards of liability, higher damage awards, or other relevant changes in circumstances. The franchisee will receive written notice of such modifications and must take prompt action to secure the additional coverage or higher policy limits.

Furthermore, each insurance policy must be specifically endorsed to provide that the coverages shall be primary and that any insurance carried by any additional insured shall be excess and noncontributory. The applicable limits of each insurance policy shall be exhausted before any benefits may be obtained under any other insurance providing coverage to Chicken Guy. Franchisees must provide Chicken Guy with a certificate of insurance no later than 30 days after the Franchise Agreement is executed and on each policy renewal date thereafter. The insurance policy must be written by an insurance company that has received and maintains an "A+" or better rating by the latest edition of Best's Insurance Rating Service.