What are the minimum employer's liability insurance amounts required 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 employer's liability insurance with specific minimum coverage amounts. The required coverage includes $1,000,000 per accident, $1,000,000 for each employee per disease, and a $1,000,000 policy limit per disease. This insurance is in addition to workers' compensation insurance, which must be maintained at statutory limits.
This requirement means that a Crave franchisee needs to secure an insurance policy that meets these minimum thresholds to protect against potential liabilities arising from employee injuries or illnesses. Failing to maintain the required insurance coverage constitutes a breach of the franchise agreement. Crave also requires to be named as an additional insured on the policy.
Crave retains the right to modify these insurance requirements, including increasing the minimum coverage amounts to reflect changes in inflation or market conditions. Franchisees are responsible for complying with any such changes at their own expense. It is also important to note that all insurance policies, except for workers' compensation, must name Crave and its affiliates as additional insureds. Franchisees must provide Crave with certificates of insurance evidencing proper coverage and waivers at least 30 days prior to the expiration of any policy.
If a franchisee fails to procure or maintain the necessary insurance, Crave has the right, but not the obligation, to obtain the insurance and charge the franchisee, along with a 10% administrative fee. This underscores the importance of maintaining continuous and adequate insurance coverage as mandated by Crave to avoid potential financial burdens and maintain compliance with the franchise agreement.