Does Crave require insurance coverage to include CRAVE Franchising, LLC as additional insureds?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
ied 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;
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, franchisees are required to obtain insurance coverage that includes CRAVE Franchising, LLC as additional insureds. Specifically, the general liability and auto liability policies must list CRAVE Franchising, LLC and its members, officers, directors, partners, shareholders, regional directors, subsidiaries, affiliates, agents, and employees as additional insureds on a primary non-contributory basis. This requirement is to protect Crave Franchising, LLC from potential liabilities arising from the franchisee's operations.
The insurance policy must be provided on an Additional Insured Grantor of Franchise Endorsement form CG2029, or an endorsement form with comparable wording acceptable to Crave. This ensures that the additional insured status is properly documented and recognized by the insurance carrier. Franchisees must also ensure that their insurers agree to waive rights of subrogation against CRAVE Franchising, LLC, preventing the insurance company from pursuing claims against Crave in the event of a loss.
Crave may modify the minimum insurance coverage requirements each year, which could include increases to reflect changes in inflation or market conditions. Franchisees are obligated to provide certificates of insurance to Crave at least ten days before construction or improvement begins and no fewer than thirty days prior to the expiration of any policy. This allows Crave to verify that franchisees maintain the required coverage levels and that the company is properly listed as an additional insured. These measures are standard practice in franchising to protect the franchisor from liabilities related to the franchisee's business operations.