What is the minimum coverage limit for Automobile Liability insurance for a Chicken Guy franchise?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
plicable) with limits of insurance of not less than the full replacement value of the Franchised Restaurant, and its furniture, fixtures, equipment, inventory and other tangible property.
- (3) 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.
- (4) Plate Glass Insurance for replacement of glass from breakage.
- (5) Employer's Liability Insurance in the amount of $500,000 per person, $500,000 in the aggregate and $500,000 for occupational disease.
- (6) Liquor Liability Insurance for bodily injury and property damage on an occurrence basis with policy
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Chicken Guy Franchise Disclosure Document, if a franchisee is engaged in any delivery operations, they must maintain Automobile Liability insurance. The minimum coverage must be on a Symbol 1 (any auto) basis and in the amount of $1,000,000 per occurrence on any auto.
This requirement ensures that Chicken Guy franchisees who offer delivery services have adequate financial protection in case of accidents involving vehicles used for the business. The "Symbol 1 (any auto) basis" means the insurance covers any vehicle used for delivery, whether owned, hired, or non-owned.
The $1,000,000 per occurrence limit provides a substantial safety net for potential liabilities arising from a single accident. Franchisees should factor in the cost of this insurance when evaluating the overall investment and operational expenses of a Chicken Guy franchise, especially if they plan to offer delivery services.
Additionally, Chicken Guy requires that the franchisee also maintain Umbrella or Excess Liability Insurance in the amount of $3,000,000 per occurrence and $3,000,000 in annual aggregate that includes the prior mentioned coverages as underlying policies. Coverage shall follow form over general liability (including non-owned & hired liability), liquor liability, automobile liability and employer's liability.