When must a Crave franchisee procure insurance policies?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
he sole purpose of obtaining any and all returns and reports filed by you with any state and/or federal taxing authority pertaining to the Franchised Business. This power of attorney shall survive the expiration or termination of this Agreement.
ARTICLE 12 INSURANCE
- 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, a franchisee must procure insurance policies before beginning construction or improvement of the franchised business premises. These policies must remain in effect throughout the term of the Franchise Agreement and for any period necessary to cover events that occurred during the agreement's term.
The insurance policies must protect the franchisee, Crave, their successors, assigns, affiliates, and respective officers, directors, shareholders, partners, agents, representatives, independent contractors, and employees against any claims related to personal injury, death, property damage, loss, liability, or expense arising from the franchised business. The insurance company providing the policies must be acceptable to Crave and have a rating of "A-" or higher from A.M. Best Company.
The franchisee must deliver Certificates of Insurance to Crave at least ten days before construction or improvement begins. These certificates must evidence proper coverage with the required limits. Additionally, franchisees must provide updated certificates no fewer than thirty days before the expiration of any existing policy. Crave may modify the minimum insurance coverage requirements annually to reflect changes in inflation or market conditions.