Under what condition does Chicken Guy require Liquor Liability Insurance?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
ities caused by or occurring in connection with the development or operation of each Franchised Restaurant, which shall include, at a minimum, insurance policies of the kinds, and in the amounts, required by Section 6.B. Chicken Guy, and any entity with an insurable interest designated by Chick
Source: Item 23 — RECEIPTS (FDD pages 50–286)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, Liquor Liability Insurance is required for bodily injury and property damage with policy limits of not less than $1,000,000 per Franchised Restaurant. This is only required to the extent that Chicken Guy has approved the sale of alcoholic beverages at any Franchised Restaurant.
This means that if a Chicken Guy franchisee intends to sell alcohol at their restaurant, they must obtain Liquor Liability Insurance with the specified coverage limits. This insurance protects against potential claims arising from the sale of alcohol, such as injuries or damages caused by intoxicated patrons. The franchisee is responsible for ensuring that their restaurant complies with this insurance requirement if they have been approved to sell alcoholic beverages.
It is important to note that the approval to sell alcoholic beverages is at the discretion of Chicken Guy. If a franchisee is not approved to sell alcohol, they would not be required to carry Liquor Liability Insurance. However, if approval is granted, maintaining this insurance coverage is mandatory to protect both the franchisee and Chicken Guy from potential liabilities associated with alcohol sales.