Who must be named as an additional insured in Chicken Guy franchisee liability policies?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
Chicken Guy, and any entity with an insurable interest designated by Chicken Guy, shall be an additional insured in all liability policies (except workers compensation) to the extent each has an insurable interest.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, Chicken Guy, as well as any entity with an insurable interest designated by Chicken Guy, must be included as an additional insured in all liability policies held by the franchisee, with the exception of workers compensation policies.
This requirement means that the franchisee's insurance policies must extend coverage to Chicken Guy and any other designated entities, protecting them against potential liabilities arising from the franchisee's operations. This is a common practice in franchising, as it provides an added layer of protection for the franchisor against lawsuits or claims related to the franchisee's business.
The franchisee is responsible for ensuring that these additional insured parties are properly listed on their insurance policies and for providing proof of insurance to Chicken Guy. Failure to comply with this requirement could result in Chicken Guy procuring the insurance themselves and charging the cost to the franchisee.