What is the minimum coverage amount required for commercial automobile liability coverage for a Crave franchise?
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 must maintain commercial automobile liability coverage. This coverage must include owned, non-owned, rented, or hired vehicles. The minimum coverage required is $1,000,000 combined single limit.
This requirement ensures that Crave franchisees have adequate financial protection in case of accidents involving vehicles used in their business operations. The $1,000,000 minimum coverage is designed to cover potential liabilities arising from bodily injury or property damage caused by vehicle-related incidents.
Crave also requires that the insurance policies 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 auto liability policy. Franchisees must provide certificates of insurance to Crave, evidencing the required coverage, before construction begins and at least 30 days prior to the expiration of any policy.
It's important to note that Crave may modify the minimum coverage requirements each year, potentially increasing them to reflect changes in inflation or market conditions. Therefore, prospective franchisees should factor in potential future increases in insurance costs when evaluating the financial feasibility of the franchise.