Does Craters & Freighters require warehouse storage insurance coverage for franchisees?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
The policies and amounts provided above are our minimum insurance requirements. We strongly recommend that you work with a licensed insurance agent or broker to identify and obtain additional insurance coverage for your Franchised Business including, but not limited to, warehouse storage and cyber insurance coverage.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 18–20)
What This Means (2025 FDD)
According to Craters & Freighters's 2025 Franchise Disclosure Document, while specific warehouse storage insurance is not explicitly mandated, Craters & Freighters does emphasize the importance of having adequate insurance coverage. The FDD states that the listed policies and amounts are the minimum requirements.
The document strongly recommends that franchisees consult with a licensed insurance agent or broker to explore and secure additional insurance coverage tailored to their Franchised Business. This includes considering warehouse storage and cyber insurance coverage, suggesting that Craters & Freighters recognizes these as important potential areas of risk for franchisees.
While not mandatory, Craters & Freighters's recommendation highlights the need for franchisees to assess their specific risks and insurance needs beyond the minimum requirements. This implies that if a franchisee's business operations involve significant warehouse storage, obtaining appropriate insurance coverage would be a prudent business decision, even if not strictly enforced by Craters & Freighters.