What is the minimum coverage amount required for All Risks Property Insurance for a Chicken Guy franchise?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
ise Agreement and on each policy renewal date thereafter.
These required insurance policies include, at a minimum, the following: Comprehensive or Commercial General Liability Insurance, including coverage for bodily injury, personal injury, products liability, contractual liability, broad form property damage, non-owned automobiles, and completed operations and property damage on an occurrence basis with policy limits of not less than $1,000,000 per occurrence and $2,000,000 in the aggregate; All Risks Property Insurance for fire and related peril (including floods and earthquakes where applicable) with limits of insurance of not less than the full replacement value of the Franchised Restaurant, its furniture, fixtures, equipment, inventory and other tangible property; Business Interruption and Extra Expense Insurance, including rental payment continuation for a minimum of 12 months, loss of profits and other extra expenses experienced during the recovery from property loss; Plate Glass Insurance for replacement of glass from breakage; Employer's Liability Insurance in the amount of $500,000 per person, $500,000 in the aggregate and $500,000 for occupational disease; Liquor Liability Insurance for bodily injury and property damage on an occurrence basis with policy limits of not less than $1,000,000, to the extent that we have approved the sale of alcoholic beverages at the Franchised Restaurant; Workers' Compensation and such other insurance as may be required by statute or rule of the state or locality in which the Franchised Restaurant is located, including coverage for all of your employees who participate in any of the training programs; Builder's All Risks Insurance in connection with new construction or substantial renovation, refurbishment or remodeling of the Franchised Restaurant; Automobile Liability if you are engaged in any delivery operations with coverage on a Symbol 1 (any auto) basis in the amount of $1,000,000 per occurrence on any auto; Cyber-Liability Insurance with a minimum limit of $1,000,000 to include coverage for business interruption loss, cyber extortion, data recovery costs and data and network liability; and Umbrella or Excess Liability Insurance in the amount of $3,000,000 per occurrence and $3,000,000 in the annual aggregate that incl
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 20–22)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, franchisees must maintain All Risks Property Insurance for fire and related perils, including floods and earthquakes where applicable. The minimum limit of insurance must be no less than the full replacement value of the franchised restaurant. This valuation includes all furniture, fixtures, equipment, inventory, and other tangible property.
This requirement ensures that the Chicken Guy location can be fully restored in the event of a covered loss, protecting both the franchisee's and franchisor's investment. The franchisee is responsible for determining the full replacement value and securing coverage accordingly. It is important to note that the franchisor may reasonably increase the minimum coverage required to reflect inflation, changes in standards of liability, higher damage awards, or other relevant changes in circumstances. Franchisees will receive written notice of such modifications and must take prompt action to secure the additional coverage or higher policy limits.
Franchisees must ensure that all insurance policies are written by an insurance company (or companies) satisfactory to Chicken Guy and comply with their standards and specifications, which will be supplied in writing. A certificate of insurance must be submitted to Chicken Guy when signing the Development Agreement or any Franchise Agreement and on each policy renewal date thereafter. This ensures that the franchisee maintains the required coverage throughout the term of the agreement.