What is the minimum coverage amount required for employment practices 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 employment practices liability coverage with a minimum limit of $100,000 per occurrence and $100,000 in the aggregate. This insurance protects the franchisee against claims related to employment practices such as discrimination, wrongful termination, or harassment.
Maintaining this level of coverage is a requirement for operating a Crave franchise. Franchisees must ensure that their insurance policies are underwritten by insurers licensed and permitted to write coverage in the state where the franchised business is located. Additionally, Crave Franchising, LLC must be named as an additional insured on a primary non-contributory basis to the general liability policy and the auto liability policy.
Crave Franchising, LLC retains the right to modify the minimum coverage requirements annually, potentially increasing them to reflect changes in inflation or market conditions. Franchisees are responsible for staying informed about any changes to these requirements and adjusting their coverage accordingly to remain compliant with the franchise agreement. Failing to maintain the required insurance coverage could result in a breach of the franchise agreement.