What is the maximum deductible amount permitted for insurance policies under the Chicken Guy franchise agreement, unless otherwise approved by Chicken Guy?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
ity and employer's liability.
- C. General Insurance Requirements. The following general requirements shall apply to each insurance policy that Developer is required to maintain under this Agreement:
- (1) Each ins
Source: Item 23 — RECEIPTS (FDD pages 50–286)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, the standard franchise agreement stipulates specific insurance requirements for franchisees. Unless Chicken Guy provides written approval otherwise, franchisees are restricted to a maximum deductible of $5,000 for their insurance policies. Additionally, the franchisee's co-insurance under any insurance policy must be 80% or greater.
This requirement ensures that franchisees maintain adequate insurance coverage to protect both their business and the Chicken Guy brand. The relatively low deductible helps to minimize the franchisee's out-of-pocket expenses in the event of a claim, while the co-insurance requirement ensures that the franchisee shares a significant portion of the risk with the insurer.
Prospective Chicken Guy franchisees should carefully review the insurance requirements outlined in the Franchise Agreement and consult with an insurance professional to ensure they can obtain the necessary coverage at a reasonable cost. It is also important to understand the process for requesting written approval from Chicken Guy for a higher deductible, should the need arise.