Who must Crave franchisees protect with their 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.
12.2 Such policy or policies shall be written by a responsible, duly licensed carrier or carriers reasonably acceptable to us and shall include, at a minimum (except as additional coverages and higher policy limits may reasonably be specified by us from time to time), in accordance with standards and specifications set forth in writing, any insurance that you must have according to the terms of the lease for the Accepted Location and as required by applicable law. All insurance must be on an "occurrence" basis. Currently you must maintain the following insurance:
12.2.1 Coverage which includes CRAVE Franchising, LLC as additional insureds 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).
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.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, franchisees are required to maintain insurance policies that protect themselves, Crave Franchising, LLC, its successors and assigns, affiliates, and their respective officers, directors, shareholders, partners, agents, representatives, independent contractors, and employees. This broad coverage ensures that various stakeholders associated with the Crave franchise system are protected against potential claims related to personal injury, death, property damage, loss, liability, or expenses arising from the operation of the franchised business.
Crave franchisees must ensure that their insurance policies include Crave Franchising, LLC as additional insureds on a primary non-contributory basis for both general liability and auto liability policies. The specific listing on the certificate of insurance should include CRAVE Franchising, LLC and its member, officers, directors, partners, shareholders, regional directors, subsidiaries and affiliates, agents and employees. This requirement is typically documented using an Additional Insured Grantor of Franchise Endorsement form CG2029 or a comparable form acceptable to Crave.
The insurance policies must be underwritten by insurers licensed and permitted to write coverage in the state where the franchised business is located. Furthermore, Crave franchisees and their insurers must agree to waive rights of subrogation against CRAVE Franchising, LLC. This means that the insurance company cannot seek to recover costs from Crave in the event of a claim. These measures are designed to protect Crave from financial liabilities and ensure the stability of the franchise system. Crave may also modify the minimum coverage requirements annually to reflect changes in inflation or market conditions.