What is the minimum coverage limit per occurrence for Comprehensive or Commercial General Liability Insurance required for a Chicken Guy franchise?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
s, liability, personal injury, death, property damage, or expense whatsoever occurring upon the premises of, or in connection with the development or operation of, the Franchised Restaurant. Franchisee shall maintain in full force and effect throughout the term of this Agreement that insurance which Franchisee determines is necessary or appropriate for liabilities caused by or occurring in connection with the
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, franchisees must maintain Comprehensive or Commercial General Liability Insurance with specific coverage limits. This insurance must include coverage for bodily injury, personal injury, products liability, contractual liability, broad form property damage, non-owned automobiles, and completed operations. The minimum required coverage is $1,000,000 per occurrence and $2,000,000 in the aggregate.
This requirement ensures that Chicken Guy franchisees have adequate financial protection against potential liabilities arising from the operation of their restaurants. The insurance policy must be written by a company satisfactory to Chicken Guy and adhere to the standards and specifications outlined in the franchise manual or provided in writing. Chicken Guy retains the right to increase the minimum required coverage to reflect changes in liability standards, inflation, or other relevant circumstances, providing written notice to the franchisee.
In addition to the general liability insurance, Chicken Guy franchisees are required to maintain other types of insurance, including All Risks Property Insurance, Business Interruption and Extra Expense Insurance, Plate Glass Insurance, Employer's Liability Insurance, Liquor Liability Insurance (if applicable), and Workers' Compensation. Franchisees must provide Chicken Guy with a certificate of insurance and proof of payment within 30 days of signing the franchise agreement and upon each policy renewal. Failure to maintain the required insurance allows Chicken Guy to procure insurance on the franchisee's behalf and charge the costs to the franchisee.