What provision must be included in a lease agreement for a Crave franchise?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
r claim with respect to personal injury, death or property damage, or any loss, liability or expense whatsoever arising or occurring upon or in connection with the Franchised Business. Such insurance policies must be written by an insurance company acceptable to us and which has a rating of "A-" or higher with A.M. Best Company.
12.2 Such policy or policies shall be written by a responsible, duly licensed carrier or carriers reasonably acceptable to us and shall include, at a minimum (except as additional coverages and higher policy limits may reasonably be specified by us from time to time), in accordance with standards and specifications set forth in writing, any insurance that you must have according to the terms of the lease for the Accepted Location and as required by applicable law. All insurance must be on an "occurrence" basis. Currently you must maintain the following insurance:
12.2.1 Coverage which includes CRAVE Franchising, LLC as additional insureds on a primary non-contributory basis to the general liability policy and the auto liability policy. The additional insureds should be listed on the certificate as follows: CRAVE Franchising, LLC and its member, officers, directors, partners, shareholders, regional directors, subsidiaries and affiliates, agents 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;
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the lease agreement for the Accepted Location must include any insurance terms that Crave requires. Specifically, Crave Franchising, LLC must be included as additional insureds on a primary non-contributory basis to the general liability policy and the auto liability policy.
This requirement means that Crave is protected under the franchisee's insurance policies for any claims related to personal injury, death, property damage, loss, liability, or expense occurring at the Franchised Business. The additional insureds should be listed on the certificate as follows: CRAVE Franchising, LLC and its member, officers, directors, partners, shareholders, regional directors, subsidiaries and affiliates, agents 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).
Furthermore, the insurance must be underwritten by insurers licensed and permitted to write coverage in the state where the Franchised Business is located. The franchisee must also ensure that they and their insurers agree to waive rights of subrogation against CRAVE Franchising, LLC. This prevents the insurance company from pursuing Crave to recover any payments made due to a claim.
Crave may modify the minimum insurance coverage requirements annually, potentially increasing coverage to reflect inflation or market conditions. The franchisee is obligated to stay compliant with these changes. Before construction or improvements begin, and at least 30 days before any policy expires, the franchisee must provide Certificates of Insurance to Crave as evidence of proper coverage and the waiver of subrogation.