Who is responsible for the expense of the insurance policies for a Crave franchise?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
he sole purpose of obtaining any and all returns and reports filed by you with any state and/or federal taxing authority pertaining to the Franchised Business. This power of attorney shall survive the expiration or termination of this Agreement.
ARTICLE 12 INSURANCE
- 12.1 You shall procure, before you begin construction and/or improvement of the Franchised Business premises, and shall maintain in full force and effect at all times during the term of this Agreement (and for such period thereafter as is necessary to provide the coverages required hereunder for events having occurred during the term of this Agreement) at your expense, an insurance policy or policies protecting you and us, our successors and assigns, our affiliates, and our respective officers, directors, shareholders, partners, agents, representatives, independent contractors and employees of each of them against any demand or 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.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the franchisee is responsible for the expense of the insurance policies. Specifically, the franchisee must procure and maintain insurance policies at their own expense, protecting both themselves and Crave, its successors, affiliates, and personnel, against claims related to personal injury, death, property damage, loss, liability, or any expenses connected to the franchised business. These policies must be maintained throughout the term of the Franchise Agreement and beyond, as necessary to cover events that occurred during the agreement's term.
The insurance policies must be written by a company acceptable to Crave with a rating of "A-" or higher from A.M. Best Company. The policies must be written by a duly licensed carrier and include any insurance required by the lease for the location and by applicable law. All insurance must be on an "occurrence" basis. Crave Franchising, LLC must be included as additional insureds on a primary non-contributory basis to the general liability and auto liability policies.
Crave may modify the minimum coverage requirements annually, potentially increasing them to reflect inflation or market conditions. The franchisee is responsible for covering these increased costs. Additionally, the franchisee must maintain builders' risks insurance and performance and completion bonds for any construction, renovation, or remodeling of the franchised business. If a franchisee fails to maintain the required insurance, Crave has the right to procure such insurance and charge the franchisee, along with a 10% administrative fee. Crave also reserves the right to modify the types and amounts of coverage required, with the franchisee bearing the expense of these changes.