What is the minimum combined single limit for comprehensive general liability insurance 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 comprehensive general liability insurance with specific minimum coverage amounts. This insurance must include products and completed operations coverage. The minimum combined single limits are $2,000,000 per occurrence, $2,000,000 for personal and advertising injury, $2,000,000 for completed operations/products aggregate, and $2,000,000 aggregate per location.
This requirement ensures that Crave franchisees have sufficient financial protection against potential liabilities arising from accidents, injuries, or damages related to their business operations. The insurance policy must be underwritten by insurers licensed and permitted to write coverage in the state where the franchised business is located. Additionally, Crave Franchising, LLC must be included as an additional insured on a primary non-contributory basis to the general liability policy.
Crave may modify the minimum coverage requirements each year, which could include increases to reflect changes in inflation or market conditions. Franchisees must provide Certificates of Insurance to Crave at least ten days before construction begins and no fewer than thirty days prior to the expiration of any policy, evidencing the existence and continuation of proper coverage. Franchisees and their insurers must also agree to waive rights of subrogation against Crave Franchising, LLC.
Prospective franchisees should factor these insurance costs into their initial investment and ongoing operating expenses. It is important to consult with an insurance professional to ensure that the coverage obtained meets Crave's requirements and adequately protects the franchisee's business interests. Failing to maintain the required insurance coverage could result in a breach of the franchise agreement.