What exclusion should the Commercial General Liability policy required for a Crave franchise NOT contain?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
nts and employees; and it must be provided on an Additional Insured Grantor of Franchise Endorsement form CG2029 (or an endorsement form with comparable wording acceptable to us).
- 12.2.2 Insurance must be underwritten by insurers licensed and permitted to write coverage in the state in which the Franchised Business is located. These policies must include the coverage that we require, which currently includes: (a) "all risk" or "special" property insurance covering all real and personal property and equipment on a replacement costs basis, including business interruption and extra expense insurance on an actual loss sustained basis; (b) comprehensive general liability insurance, including products and completed operations in an amount of not less than the following combined single limits: Two Million Dollars ($2,000,000) per occurrence, Two Million Dollars ($2,000,000) personal and advertising injury, Two Million Dollars ($2,000,000) completed operations/products aggregate, Two Million Dollars ($2,000,000) aggregate per location; (c) employment practices liability coverage with a limit of One Hundred Thousand Dollars ($100,000) per occurrence and in the aggregate; (d) commercial automobile liability coverage, including coverage of owned, non-owned, rented or hired vehicles with coverage in amounts not less than One Million Dollars ($1,000,000) combined single limit; and (e) workers' compensation insurance for statutory limits and employer's liability insurance in amounts not less than One Million Dollars ($1,000,000) per accident, One Million Dollars ($1,000,000) each employee per disease and On
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
Based on the 2025 FDD, Crave franchisees are required to maintain comprehensive general liability insurance, including products and completed operations coverage. The minimum coverage required is $2,000,000 per occurrence, $2,000,000 for personal and advertising injury, $2,000,000 for completed operations/products aggregate, and $2,000,000 aggregate per location.
The FDD does not explicitly state any exclusions that the Commercial General Liability policy should not contain. However, it emphasizes the importance of specific coverages and minimum limits. This implies that the policy should be comprehensive enough to meet these requirements without exclusions that would undermine the mandated coverage levels.
Therefore, a prospective Crave franchisee should carefully review the terms of their Commercial General Liability insurance policy to ensure it provides the required coverage amounts and includes products and completed operations coverage, while also confirming that no exclusions would prevent them from meeting the franchisor's minimum coverage requirements. It would be prudent to discuss specific exclusions with the insurance provider and the franchisor to ensure full compliance.