On what basis must all insurance be obtained for a Crave franchise?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
Before you begin construction of the Restaurant or before you take delivery of your Food Truck, you must obtain the insurance coverages we require. The insurance must be underwritten by insurers licensed and permitted to write coverage in the state in which the Restaurant is located or the Food Truck will be operating and with a rating of "A-" or better with A.M. Best Company. We may modify our insurance requirements during the term of your Franchise Agreement, and any modifications will be communicated to you in our Manual or otherwise in writing. The insurance coverage must be maintained during the term of the Franchise Agreement and must be obtained from a responsible, duly licensed carrier or carriers acceptable to us. All insurance must be on an "occurrence" basis. You must provide us with certificates of insurance showing that you have obtained the required insurance coverages at least ten days before construction of your Restaurant begins or before you take delivery of Food Truck, and then 30 days before expiration of each policy. In addition, related to any construction, renovation, or remodeling of the Restaurant, you must maintain builders' risks insurance and performance and completion bonds in forms and amounts, and written by a carrier or carriers, satisfactory to us.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 26–30)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, all insurance must be obtained on an "occurrence" basis. This means that the insurance policy will cover incidents that occur during the policy period, regardless of when a claim is filed.
Crave requires franchisees to obtain specific insurance coverages before construction of the restaurant begins or before taking delivery of the food truck. The insurance must be underwritten by insurers licensed and permitted to write coverage in the state where the restaurant is located or the food truck will operate, and the insurer must have a rating of "A-" or better with A.M. Best Company. Franchisees must provide certificates of insurance showing they have obtained the required coverages at least ten days before construction begins or before taking delivery of the food truck, and then 30 days before the expiration of each policy.
Crave may modify its insurance requirements during the term of the Franchise Agreement, and any modifications will be communicated in the Manual or in writing. The insurance coverage must be maintained during the term of the Franchise Agreement and must be obtained from a responsible, duly licensed carrier or carriers acceptable to Crave. Additionally, related to any construction, renovation, or remodeling of the Restaurant, franchisees must maintain builders' risks insurance and performance and completion bonds in forms and amounts, and written by a carrier or carriers, satisfactory to Crave.