What evidence of insurance coverage is required by Chicken Guy before opening a Chicken Guy franchise?

According to Chicken Guy's 2025 Franchise Disclosure Document, franchisees must provide evidence of satisfactory insurance coverage and proof of payment to Chicken Guy no later than 30 days after the Franchise Agreement is executed, and on each policy renewal date thereafter. This evidence can be in the form of a certificate of insurance or other documentation required by Section 16.D of the agreement. The insurance evidence must include a statement from the insurer confirming that the policy will not be canceled or materially altered without at least 10 days' prior written notice to Chicken Guy. Chicken Guy may also request copies of all insurance policies, amendments, and riders. Chicken Guy will not authorize the opening of a restaurant unless they have been furnished with copies of all insurance policies required or other evidence of coverage and payment of premiums.

Chicken Guy requires franchisees to maintain several types of insurance policies with specific coverage amounts. These include Commercial General Liability Insurance ($1,000,000 per occurrence and $2,000,000 in the aggregate), All Risks Property Insurance (full replacement value of the restaurant), Business Interruption and Extra Expense Insurance (12 months of rental payment continuation), Plate Glass Insurance, Employer's Liability Insurance ($500,000 per person, aggregate, and for occupational disease), Liquor Liability Insurance ($1,000,000), and Workers' Compensation.

All insurance policies must be written by a company satisfactory to Chicken Guy and maintain an "A+" or better rating by Best's Insurance Rating Service. The policies must be endorsed to be primary, with any insurance carried by additional insured parties considered excess and noncontributory. Franchisees must notify their insurers of the Franchise Agreement and try to get an endorsement stating that the policy's limits will be exhausted before any benefits are obtained from other insurance covering Chicken Guy. The deductible amount for any policy cannot exceed $5,000 without written approval from Chicken Guy, and the franchisee's co-insurance must be 80% or greater.