Can Hck Hot Chicken increase the required insurance coverage amounts?

According to Hck Hot Chicken's 2025 Franchise Disclosure Document, Hck Hot Chicken has the right to increase the required insurance coverage amounts for its franchisees. The document states that Hck Hot Chicken may periodically increase the amounts of coverage required under the insurance policies and/or require different or additional insurance coverage at any time.

Currently, franchisees must maintain specific insurance coverage, including commercial general liability insurance with limits of at least $1 million per occurrence and $2 million aggregate, along with other coverage types like all-risks insurance and workers' compensation. The insurance policies must be purchased from a supplier rated A+ or better by A.M. Best & Company, Inc., or meeting other criteria Hck Hot Chicken may periodically establish.

This provision allows Hck Hot Chicken to adapt to changing market conditions, increased risks, or new legal requirements by adjusting the insurance coverage that franchisees must carry. For a prospective franchisee, this means that the initial insurance costs outlined in the FDD could increase over time, impacting their operating expenses. Franchisees must ensure their insurance policies name Hck Hot Chicken and any designated affiliates as additional insured parties and provide 30 days' prior written notice of any material modification, cancellation, or expiration of a policy. Franchisees are also required to furnish Hck Hot Chicken with a copy of their certificate of insurance within ten days after the policy is issued or renewed.