What is the minimum coverage limit for Cyber Liability Insurance required for a Chicken Guy franchise?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
(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
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Chicken Guy Franchise Disclosure Document, franchisees are required to maintain Cyber Liability Insurance with a minimum coverage limit of $1,000,000. This insurance must include coverage for business interruption loss, cyber extortion, data recovery costs, and data and network liability.
This requirement ensures that Chicken Guy franchisees are protected against potential financial losses resulting from cyber incidents. Cyber Liability Insurance is designed to help cover costs associated with data breaches, ransomware attacks, and other cyber threats, which can be significant for a restaurant business that handles sensitive customer data and relies on network systems for operations.
For a prospective franchisee, this means factoring in the cost of this insurance policy when assessing the overall investment and operating expenses. It is important to understand the specific terms and conditions of the policy to ensure it adequately covers the risks associated with running a Chicken Guy franchise. Franchisees should also consult with insurance professionals to determine if additional coverage is necessary based on their specific circumstances and risk profile.