What is the minimum limit for Cyber Liability Insurance required for a Chicken Guy franchise?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
higher damage awards or other relevant changes in circumstances. Developer shall receive written notice of such modifications and shall take prompt action to secure the additional coverage or higher policy limits. These policies shall include, at a minimum, the following for each Franchised Restaurant:
- (1) Comprehensive or Commercial General Liability Insurance, including coverage for bodily injury, personal injury, products liability, contractual liability, broad form property damage, nonowned automobiles, completed operati
Source: Item 23 — RECEIPTS (FDD pages 50–286)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, a developer is required to maintain Cyber Liability Insurance with a minimum limit of $1,000,000. This insurance must include coverage for business interruption loss, cyber extortion, data recovery costs, and data and network liability.
In addition to Cyber Liability Insurance, the developer must also maintain Umbrella or Excess Liability Insurance in the amount of $3,000,000 per occurrence and $3,000,000 in annual aggregate. This umbrella policy should include the coverages mentioned above as underlying policies and follow the form over general liability, liquor liability, automobile liability, and employer's liability.
Chicken Guy also stipulates general insurance requirements, including that each policy be endorsed to provide primary coverage, with any insurance carried by additional insured parties being excess and non-contributory. The insurance policies should not limit or reduce coverage in the event of a claim by Chicken Guy or its affiliates and must extend to all obligations and liabilities of the developer to third parties. The insurance company must have an "A+" or better rating by Best's Insurance Rating Service, and deductible amounts should not exceed $5,000 unless otherwise approved by Chicken Guy.