factual

When is Builder's All Risk Insurance required for a Chicken Guy franchise?

Chicken_Guy Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (8) Builder's All Risk Insurance in connection with any new construction or substantial renovation, refurbishment or remodeling of the Franchised Restaurant.

Source: Item 22 — CONTRACTS (FDD page 50)

What This Means (2025 FDD)

According to Chicken Guy's 2025 Franchise Disclosure Document, Builder's All Risk Insurance is required in connection with any new construction, substantial renovation, refurbishment, or remodeling of the franchised restaurant. This insurance coverage is specifically tied to construction-related activities that alter or improve the physical structure of the Chicken Guy restaurant.

This requirement ensures that the franchisee has adequate coverage during the construction phase, protecting against potential risks such as property damage, accidents, or other unforeseen events that could occur during the building or renovation process. The franchisee must secure this insurance when undertaking any significant changes to the restaurant's physical structure.

For a prospective Chicken Guy franchisee, this means factoring in the cost of Builder's All Risk Insurance when planning any construction or remodeling projects. It's important to understand the scope of coverage required and to obtain the necessary insurance before commencing any work to ensure compliance with the franchise agreement and to protect the investment in the restaurant.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.