How will the Chicken Guy Developer be notified of modifications to the minimum required insurance coverage?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Developer shall receive written notice of such modifications and shall take prompt action to secure the additional coverage or higher policy limits.
Source: Item 23 — RECEIPTS (FDD pages 50–286)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, Chicken Guy may increase the minimum required insurance coverage and may also require different or additional kinds of insurance to reflect inflation, changes in standards of liability, higher damage awards or other relevant changes in circumstances. Chicken Guy will provide the Developer with written notice of these modifications. The Developer must then take prompt action to secure the additional coverage or higher policy limits.
This means that as a Chicken Guy Developer, you must maintain the insurance coverage that Chicken Guy requires. These requirements can change during the term of the Development Agreement. It is your responsibility to stay informed of any changes to the insurance requirements and to ensure that your insurance coverage meets the new requirements in a timely manner.
Failure to maintain the required insurance coverage could result in Chicken Guy procuring the insurance on your behalf and charging you for the costs. It could also potentially lead to a default under the Development Agreement. Therefore, it is crucial to carefully review any written notices from Chicken Guy regarding insurance modifications and to take the necessary steps to comply with the updated requirements.