What insurance payments are required for a Craters & Freighters franchise?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
13. INSURANCE.
- 13.1 Required Policies. Franchisee must procure and keep in force insurance policies, in such amounts and on such terms, as prescribed by Franchisor in the Operations Manuals, by an insurance company acceptable to Franchisor at all times during this Agreement. Franchisee must obtain such policies within thirty (30) days after signing this Agreement or prior to opening the Franchised Business to the public, whichever occurs first. Insurance coverage must include general liability, combined single limit, bodily injury and property damage insurance for premises operations, products liability, cargo, and packers legal liability insurance and all other occurrences against claims of any person, employee, customer, agent or otherwise in an amount per occurrence of not less than such amount set forth in the Operations Manuals. Franchisee acknowledges that Franchisor reserves the right to update such required insurance policies and amounts from time to time in Franchisor's sole discretion. Franchisee must also procure and pay for all other insurance required by state or federal law, including, without limitation, workers' compensation and unemployment insurance.
- 13.2 Insured Parties; Notice of Cancellation. All insurance policies procured and kept in force by Franchisee relating to the Franchised Business must insure Franchisee and Franchisor and their respective Affiliates, officers, stockholders, directors, and all other parties designated by Franchisor, as additional named insureds against any liability that may accrue against them by reason of the ownership, maintenance or operation by Franchisee of the Franchised Business. The policies must also stipulate that Franchisor will receive a thirty (30) day prior written notice of cancellation.
- 13.3 Proof of Insurance. Original or duplicate copies of all insurance policies, certificates of insurance, or other proof of insurance acceptable to Franchisor, including original endorsements affecting the coverage required by this Section, must be furnished to Franchisor together with proof of payment within ten (10) days of issuance thereof. Franchisee must also furnish Franchisor with certificates and endorsements evidencing such insurance coverage within ten (10) days after each of the following events: (i) at all policy renewal periods, no less often than annually, and (ii) at all instances of any change to, addition to, or replacement of any insurance. The certificates and endorsements for each insurance policy are to be signed by a person authorized by that insurer to
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, franchisees must secure and maintain specific insurance policies throughout the term of their agreement. These policies must be obtained within 30 days of signing the agreement or before opening the franchise to the public, whichever comes first. The insurance must be provided by a company acceptable to Craters & Freighters.
The required insurance coverage includes general liability, combined single limit, bodily injury and property damage insurance for premises operations, products liability, cargo, and packers legal liability insurance, and coverage for all occurrences against claims from any person, employee, customer, or agent. The amount of coverage must not be less than the amount set forth in the Operations Manuals, which Craters & Freighters can update at its discretion. Franchisees are also responsible for procuring and paying for all other insurance required by state or federal law, including workers' compensation and unemployment insurance.
All insurance policies must include Craters & Freighters and its affiliates, officers, stockholders, and directors as additional named insureds. The policies must also stipulate that Craters & Freighters receives a 30-day prior written notice of cancellation. Franchisees must provide Craters & Freighters with copies or certificates of insurance and proof of payment within 10 days of issuance. This documentation must also be provided within 10 days of each policy renewal, at least annually, and any changes to the insurance coverage.
Prospective franchisees should carefully review the Operations Manuals to understand the specific insurance amounts and terms required by Craters & Freighters. They should also factor in the costs of these insurance policies when assessing the overall financial investment of the franchise.