What is the minimum combined single limit for commercial automobile liability coverage that Crave franchisees must maintain?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
nts 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. These policies must include the coverage that we require, which currently includes: (a) "all risk" or "special" property insurance covering all real and personal property and equipment on a replacement costs basis, including business interruption and extra expense insurance on an actual loss sustained basis; (b) comprehensive general liability insurance, including products and completed operations in an amount of not less than the following combined single limits: Two Million Dollars ($2,000,000) per occurrence, Two Million Dollars ($2,000,000) personal and advertising injury, Two Million Dollars ($2,000,000) completed operations/products aggregate, Two Million Dollars ($2,000,000) aggregate per location; (c) employment practices liability coverage with a limit of One Hundred Thousand Dollars ($100,000) per occurrence and in the aggregate; (d) commercial automobile liability coverage, including coverage of owned, non-owned, rented or hired vehicles with coverage in amounts not less than One Million Dollars ($1,000,000) combined single limit; and (e) workers' compensation insurance for statutory limits and employer's liability insurance in amounts not less than One Million Dollars ($1,000,000) per accident, One Million Dollars ($1,000,000) each employee per disease and On
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 commercial automobile liability coverage with a minimum combined single limit of $1,000,000. This coverage must include owned, non-owned, rented, or hired vehicles.
This requirement ensures that Crave franchisees have adequate financial protection in the event of an accident involving a vehicle used for business purposes. The $1,000,000 limit is designed to cover potential liabilities for bodily injury or property damage caused by the franchisee or their employees while operating a vehicle for the Crave business.
Crave also requires that the insurance policy includes Crave Franchising, LLC as an additional insured on a primary non-contributory basis. This protects Crave from potential liabilities arising from the franchisee's operation of the business. Franchisees must provide certificates of insurance to Crave at least 30 days prior to the expiration of any policy, demonstrating continued coverage. Crave retains the right to modify the minimum coverage requirements annually, potentially increasing them to reflect inflation or market conditions.