What is the minimum coverage amount required for comprehensive general liability insurance per occurrence 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 comprehensive general liability insurance with a minimum coverage of $2,000,000 per occurrence. This insurance coverage must include products and completed operations. Additionally, the policy must cover $2,000,000 for personal and advertising injury, $2,000,000 for completed operations/products aggregate, and $2,000,000 aggregate per location.
Crave franchisees are also obligated to secure other insurance policies, including employment practices liability coverage with a limit of $100,000 per occurrence and in the aggregate, commercial automobile liability coverage of $1,000,000, workers' compensation insurance, liquor liability insurance of $1,000,000 per occurrence, and umbrella or excess liability insurance with limits of $2,000,000 per occurrence and $2,000,000 general aggregate. These insurance policies must be underwritten by insurers licensed and permitted to write coverage in the state where the franchised business is located.
Crave may modify the minimum coverage requirements, potentially increasing them to reflect changes in inflation or market conditions. Franchisees must provide Crave with certificates of insurance at least ten days before construction begins and no fewer than thirty days before the expiration of any policy. Furthermore, all general liability and property damage policies must contain a provision that Crave, its affiliates, and their respective personnel are entitled to recover under such policies for any loss occasioned by the negligence of the franchisee or their employees, even though they are named as insureds.
Failure to maintain the required insurance constitutes a breach of the franchise agreement. Crave has the right, but not the obligation, to procure the necessary insurance if the franchisee fails to do so, charging the franchisee for the cost plus a 10% administrative fee. Franchisees should consult with insurance professionals to ensure they obtain adequate coverage that meets Crave's requirements and protects their business from potential liabilities.