How will Crave communicate modifications to insurance requirements during the Franchise Agreement term?
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, Crave may modify its insurance requirements during the term of the Franchise Agreement. Any modifications to the insurance requirements will be communicated to franchisees either in the Manual or otherwise in writing.
This means that as a Crave franchisee, you must remain aware of potential changes to your insurance obligations throughout the duration of your agreement. Crave has the flexibility to adjust these requirements, and it is your responsibility to stay informed of these changes to ensure you maintain adequate coverage and remain compliant with the franchise agreement.
The communication methods, such as updates to the Manual or written notices, are fairly standard in franchising. Franchisees should regularly review any updates from the franchisor to ensure they are meeting all requirements. It would be prudent for a prospective franchisee to ask Crave for examples of past insurance requirement modifications and how those changes were communicated to existing franchisees.