When must a Crave franchisee provide certificates of insurance before taking delivery of a Food Truck?
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 taking delivery of a Food Truck. This requirement ensures that the franchisee has the necessary insurance coverage in place before operating the vehicle. The insurance must be underwritten by insurers licensed and permitted to write coverage in the state where the Food Truck will operate, with a rating of "A-" or better from A.M. Best Company.
Crave may modify its insurance requirements during the term of the Franchise Agreement, and any changes will be communicated in the Manual or in writing. The franchisee must maintain the required insurance coverage throughout the term of the Franchise Agreement, obtained from carriers acceptable to Crave. All insurance must be on an "occurrence" basis, meaning it covers incidents that occur during the policy term, regardless of when the claim is filed.
In addition to providing certificates of insurance ten days before taking delivery of the Food Truck, franchisees must also provide updated certificates 30 days before the expiration of each policy. This ensures continuous coverage and compliance with Crave's requirements. Failing to provide the required insurance documentation or maintain adequate coverage could result in a breach of the Franchise Agreement.
Prospective Crave franchisees should carefully review the insurance requirements outlined in the Franchise Disclosure Document and discuss any questions or concerns with the franchisor. It is important to understand the specific types and amounts of coverage required, as well as the approved insurance carriers, to ensure compliance and protect the business from potential liabilities.