On what page of the Chicken Guy Franchise Agreement can I find information about the 'Insurance' requirements?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
16. INSURANCE
A. Procurement of Insurance by Franchisee. Franchisee shall be responsible for all loss or damage arising from or related to Franchisee's development and operation of the Franchised Restaurant, and for all demands or claims with respect to any loss, 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 development or operation of the Franchised Restaurant which shall include, at a minimum, insurance policies of the kinds, and in the amounts, required by Section 16.B. 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.
- **B.
under this Agreement. Maintenance of this insurance, and the performance by Franchisee of its obligations under this Section, shall not relieve Franchisee of liability under the indemnification provisions of this Agreement.
F. Procurement of Insurance by Chicken Guy. Should Franchisee, for any reason, fail to procure or maintain at least the insurance required by this Section 16, as revised from time to time pursuant to the Manual or otherwise in writing, Chicken Guy shall have the immediate right and authority, but not the obligation, to procure such insurance and charge its cost to Franchisee. Franchisee shall reimburse Chicken Guy for all out-of-pocket costs incurred by Chicken Guy in obtaining such insurance on behalf of Franchisee immediately upon Franchisee's receipt of an invoice therefor.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, the insurance requirements are detailed in Section 16 of the Franchise Agreement. This section outlines the franchisee's responsibilities for securing and maintaining adequate insurance coverage throughout the term of the agreement.
Section 16 covers various aspects of insurance, including the types and amounts of coverage required, the conditions the insurance policies must meet, and the procedures for providing proof of insurance to Chicken Guy. Franchisees are responsible for covering losses or damages related to the operation of the franchised restaurant and must maintain insurance policies that include Chicken Guy as an additional insured.
Chicken Guy also has the right, but not the obligation, to procure insurance on behalf of the franchisee if the franchisee fails to maintain the required coverage. In such cases, the franchisee is responsible for reimbursing Chicken Guy for all costs incurred in obtaining the insurance. The insurance policies should also adhere to general requirements, such as providing primary coverage and including a waiver of subrogation in favor of Chicken Guy.