When must a Chicken Guy franchisee submit a certificate of insurance to the franchisor?

According to Chicken Guy's 2025 Franchise Disclosure Document, a franchisee must provide a certificate of insurance to Chicken Guy at two specific times. First, a certificate must be submitted when the franchisee signs the Development Agreement or any Franchise Agreement. Second, a certificate of insurance must be submitted on each policy renewal date thereafter.

This requirement ensures that Chicken Guy franchisees maintain adequate insurance coverage throughout their relationship with the franchisor. The insurance must be in full force and effect during the term of both the Development Agreement and the Franchise Agreement. The insurance coverage should address liabilities related to the development or operation of the franchised restaurant. Chicken Guy also has the right to be named as an additional insured on all liability policies, except for workers' compensation, to the extent that Chicken Guy has an insurable interest.

Chicken Guy retains the right to modify the minimum coverage requirements, potentially increasing them or requiring different types of insurance to reflect changes such as inflation, liability standards, or higher damage awards. Franchisees will receive written notice of any such modifications and must promptly secure the additional coverage or higher policy limits. All insurance policies must be written by an insurance company that is satisfactory to Chicken Guy and complies with their standards and specifications, which will be provided in writing.

This insurance requirement is a standard practice in franchising, designed to protect both the franchisee and the franchisor from potential liabilities. Franchisees should carefully review the required insurance coverage and ensure they can obtain the necessary policies from reputable insurance providers. Maintaining proper insurance is crucial for the ongoing operation of a Chicken Guy franchise and compliance with the franchise agreement.