Must the insurance policies for a Crave franchise be written by carriers licensed in the state where the Franchised Business is located?

According to Crave's 2025 Franchise Disclosure Document, the insurance policies must be underwritten by insurers licensed and permitted to write coverage in the state where the franchised business is located.

Crave requires franchisees to procure and maintain insurance policies protecting the franchisee, Crave, and related parties against claims related to personal injury, death, property damage, loss, liability, or expense. These policies must be written by an insurance company acceptable to Crave with a rating of "A-" or higher from A.M. Best Company.

The insurance coverage must include Crave Franchising, LLC as additional insureds on a primary non-contributory basis to the general liability policy and the auto liability policy. The franchisee must provide certificates of insurance to Crave at least ten days before construction begins and no fewer than thirty days before the expiration of any policy. Crave may modify the minimum coverage requirements annually to reflect changes in inflation or market conditions.

Crave also specifies the minimum coverage amounts required, including $2,000,000 per occurrence for comprehensive general liability insurance, $100,000 per occurrence for employment practices liability coverage, and $1,000,000 combined single limit for commercial automobile liability coverage. Franchisees must also maintain workers' compensation insurance, liquor liability insurance, and umbrella or excess liability insurance with specific limits. Failure to maintain the required insurance allows Crave to procure insurance and charge the franchisee, along with a 10% administrative fee.