What basis must all insurance be on for a Crave franchise?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.2 Such policy or policies shall be written by a responsible, duly licensed carrier or carriers reasonably acceptable to us and shall include, at a minimum (except as additional coverages and higher policy limits may reasonably be specified by us from time to time), in accordance with standards and specifications set forth in writing, any insurance that you must have according to the terms of the lease for the Accepted Location and as required by applicable law. All insurance must be on an "occurrence" basis.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, all insurance policies must be written on an "occurrence" basis. This means that the insurance policy will cover claims arising from incidents that occur during the policy period, regardless of when the claim is actually made.
This is a standard requirement in franchising, as it protects both the franchisee and the franchisor from potential liabilities. Crave also requires franchisees to procure insurance policies before beginning construction or improvement of the franchised business premises and maintain them throughout the term of the agreement. These policies protect the franchisee, Crave, and their affiliates against claims related to personal injury, death, property damage, or any loss arising from the franchised business.
Crave mandates that the insurance company providing the policies must be acceptable to them and have a rating of "A-" or higher with A.M. Best Company. The franchisee must also include CRAVE Franchising, LLC as additional insureds on a primary non-contributory basis to the general liability policy and the auto liability policy. Furthermore, the franchisee and their insurers must agree to waive rights of subrogation against CRAVE Franchising, LLC.
Prospective Crave franchisees should carefully review the insurance requirements outlined in the Franchise Agreement and consult with an insurance professional to ensure they obtain the necessary coverage. Franchisees must also provide Certificates of Insurance to Crave before construction begins and no fewer than thirty days prior to the expiration of any policy.