For a Crave franchise, what rating must the insurance company have with A.M. Best Company to be acceptable?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
12.1 You shall procure, before you begin construction and/or improvement of the Franchised Business premises, and shall maintain in full force and effect at all times during the term of this Agreement (and for such period thereafter as is necessary to provide the coverages required hereunder for events having occurred during the term of this Agreement) at your expense, an insurance policy or policies protecting you and us, our successors and assigns, our affiliates, and our respective officers, directors, shareholders, partners, agents, representatives, independent contractors and employees of each of them against any demand or claim with respect to personal injury, death or property damage, or any loss, liability or expense whatsoever arising or occurring upon or in connection with the Franchised Business. Such insurance policies must be written by an insurance company acceptable to us and which has a rating of "A-" or higher with A.M. Best Company.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the insurance policies you obtain must be written by an insurance company acceptable to Crave that has a rating of "A-" or higher with A.M. Best Company. This requirement applies before you begin construction or improvement of the franchised business premises and must be maintained throughout the term of the Franchise Agreement.
This means that as a prospective Crave franchisee, you will need to ensure that the insurance company you choose to provide your business insurance meets this minimum rating standard. A.M. Best is a well-known rating agency that assesses the financial strength and creditworthiness of insurance companies. A rating of "A-" or higher indicates that the insurance company has a strong ability to meet its ongoing obligations to policyholders.
Failing to maintain the required insurance coverage with an appropriately rated company could result in a breach of your Franchise Agreement with Crave. Crave also needs to be named as an additional insured on a primary non-contributory basis to the general liability policy and the auto liability policy. The additional insureds should be listed on the certificate as follows: CRAVE Franchising, LLC and its member, officers, directors, partners, shareholders, regional directors, subsidiaries and affiliates, agents 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).
It is important to discuss insurance requirements with Crave and your insurance broker to ensure full compliance with these stipulations. This will help protect both your business and Crave from potential liabilities.