What does the estimated insurance cost for a Crave franchise cover?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
| (1) | (2) | (3) | (4) | (5) |
|---|---|---|---|---|
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Made |
| Insurance – 1 Month (11) | $100 to $800 | As arranged | As arranged | Insurance Companies |
These figures are estimates of the cost of one month of insurance you must obtain and maintain for your Franchised Business, as described in Item 8.
Insurance premiums may be payable monthly, quarterly, semi-annually, or annually, based on the insurance company's practices and your creditworthiness.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 19–26)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the estimated insurance cost covers one month of insurance for the Franchised Business. The specific types of coverage are detailed in Item 8 of the FDD, but the dollar figures provided in Item 7 represent only a single month's premium. The estimated cost for this one month of insurance ranges from $100 to $800, with payment arranged between the franchisee and the insurance company.
Prospective Crave franchisees should note that the total annual cost of insurance will be significantly higher than the figures presented in Item 7, as the provided estimates only account for the first month. Franchisees will need to budget for ongoing insurance expenses, and the actual cost will depend on factors such as the location of the business, the scope of coverage, and the franchisee's creditworthiness.
It is standard practice in franchising to require franchisees to maintain certain insurance coverage to protect both the franchisee and the franchisor from potential liabilities. Item 8 of the Crave FDD will provide more specific details on the required types and amounts of coverage. Franchisees may be able to pay insurance premiums monthly, quarterly, semi-annually, or annually, depending on the insurance company's policies and their own credit situation.
Before signing the Franchise Agreement, prospective Crave franchisees should carefully review Item 8 to understand the specific insurance requirements and obtain quotes from multiple insurance providers to determine the actual cost of coverage in their area. This will help them accurately budget for this ongoing expense and ensure they have adequate protection for their business.