What factors might cause Chicken Guy to increase 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.
Franchisee shall receive written notice of such modifications and shall take prompt action to secure the additional coverage or higher policy limits.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, Chicken Guy has the right to increase the minimum required insurance coverage for its franchisees. This adjustment can occur due to several factors that impact liability and costs.
The specific reasons Chicken Guy might increase the minimum required coverage include inflation, which erodes the value of existing coverage limits, changes in standards of liability, reflecting shifts in legal precedents or societal expectations regarding responsibility, and higher damage awards, indicating that court judgments in liability cases are resulting in larger payouts. Additionally, other relevant changes in circumstances could prompt an increase in coverage requirements.
Chicken Guy franchisees will receive written notice of any such modifications and are expected to promptly secure the additional coverage or higher policy limits. This ensures that all Chicken Guy locations maintain adequate protection against potential liabilities, aligning with current economic and legal conditions.