When must a Crave franchisee provide certificates of insurance before construction of the Restaurant begins?
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, a franchisee must provide certificates of insurance at least ten days before construction of the Restaurant begins or before taking delivery of a Food Truck. This insurance coverage must be maintained throughout the term of the Franchise Agreement and must be obtained from a responsible, duly licensed carrier acceptable to Crave.
The insurance must be underwritten by insurers licensed and permitted to write coverage in the state where the Restaurant is located or the Food Truck will operate, and the insurer must have a rating of "A-" or better with A.M. Best Company. Additionally, the franchisee must provide Crave with updated certificates of insurance 30 days before the expiration of each policy to ensure continuous coverage.
For any construction, renovation, or remodeling of the Restaurant, the franchisee is also required to maintain builders' risks insurance and performance and completion bonds in forms and amounts, and written by a carrier or carriers, satisfactory to Crave. This requirement ensures that Crave franchisees have adequate insurance coverage to protect both their investment and Crave's brand reputation, and it is a fairly standard practice in the franchise industry to ensure risk management and compliance.