What coverage basis is required for Automobile Liability insurance 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 the 2025 Chicken Guy Franchise Disclosure Document, if a franchisee engages in any delivery operations, they must maintain Automobile Liability insurance. This insurance coverage must be on a Symbol 1 (any auto) basis, meaning it covers any vehicle used for delivery, whether owned, hired, or non-owned. The required coverage amount is $1,000,000 per occurrence.
This requirement ensures that Chicken Guy franchisees are adequately insured against potential liabilities arising from delivery operations. The Symbol 1 basis provides broad coverage, protecting the franchisee from claims regardless of the vehicle involved. The $1,000,000 per occurrence limit offers a substantial level of financial protection in the event of an accident.
Prospective franchisees should factor in the cost of this insurance when evaluating the financial feasibility of operating a Chicken Guy franchise, especially if they plan to offer delivery services. It is also important to note that 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.