What administrative fee does Crave charge if they obtain insurance on behalf of the franchisee?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
| (1) | (2) | (3) | (4) |
|---|---|---|---|
| Fees (1) | Amount | Due Date | Remarks |
| Insurance Premiums | Reimbursement of our costs, plus 10% administrative fee | On demand | If you do not obtain or maintain the required insurance coverages, we have the right (but not the obligation) to obtain insurance on your behalf and you must reimburse us. |
Source: Item 6 — OTHER FEES (FDD pages 12–19)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, if a franchisee fails to obtain or maintain the required insurance coverage, Crave has the right, but not the obligation, to obtain insurance on the franchisee's behalf. If Crave exercises this right, the franchisee must reimburse Crave for the cost of the insurance premiums, and also pay a 10% administrative fee on top of the reimbursement.
This means that in addition to the cost of the insurance itself, a Crave franchisee will incur an additional expense for Crave's administrative efforts in securing the insurance. This fee is due on demand, meaning Crave can request immediate payment.
It is important for prospective Crave franchisees to maintain required insurance coverage to avoid this additional administrative fee. Franchisees should factor in the cost of insurance and the potential for this administrative fee when assessing the overall financial investment required to operate a Crave franchise.