Under what condition is Liquor Liability Insurance required for a Chicken Guy franchise?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
um 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. Franchisee shall receive written notice of such m
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, Liquor Liability Insurance is required if Chicken Guy has approved the sale of alcoholic beverages at the franchised restaurant. If this approval is granted, the franchisee must maintain Liquor Liability Insurance for bodily injury and property damage on an occurrence basis with policy limits of not less than $1,000,000.
This requirement means that if a Chicken Guy franchisee intends to sell alcohol at their restaurant, they must obtain and maintain liquor liability insurance coverage. This insurance protects the franchisee against potential claims arising from the sale of alcohol, such as bodily injury or property damage caused by intoxicated patrons. The minimum coverage limit of $1,000,000 indicates the potential for significant liability in such cases.
It is important for prospective Chicken Guy franchisees to understand whether they will be permitted to sell alcohol at their location, as this decision directly impacts their insurance obligations and costs. Franchisees should discuss this with Chicken Guy during their due diligence process to fully understand the requirements and implications.