Under what circumstances can Chicken Guy increase the minimum required insurance coverage?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
Chicken Guy may reasonably increase the minimum required coverage and require different or additional kinds of insurance to reflect inflation, changes in standards of liability, 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.
Source: Item 23 — RECEIPTS (FDD pages 50–286)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, Chicken Guy has the ability to increase the minimum required insurance coverage for its developers. Chicken Guy can reasonably increase the minimum required coverage and require different or additional kinds of insurance to reflect inflation. They can also adjust insurance requirements due to changes in standards of liability, higher damage awards or other relevant changes in circumstances.
Chicken Guy is required to provide written notice to the developer regarding these modifications. Upon receiving such notice, the developer is expected to take prompt action to secure the additional coverage or higher policy limits. This ensures that the franchisee maintains adequate insurance coverage that aligns with current risks and legal standards.
This provision allows Chicken Guy to adapt to changing market conditions and legal requirements, ensuring that all franchisees maintain adequate protection against potential liabilities. For a prospective franchisee, this means being prepared to adjust insurance coverage and costs as directed by Chicken Guy, based on factors outside of their direct control.