What written certification regarding insurance coverage must a Crave franchisee provide before beginning construction of the Franchised Business premises?

According to Crave's 2025 Franchise Disclosure Document, before starting construction or improvements on the franchised business premises, a franchisee must provide written certification to Crave that the insurance coverage specified in Article 12 of the franchise agreement is in full force and effect. Alternatively, the franchisee can provide a certificate of insurance as evidence of coverage. This certification confirms that the franchisee has obtained all necessary approvals, clearances, permits, and certifications required for the construction or improvement work.

This requirement ensures that both the franchisee and Crave are protected against potential liabilities and risks associated with the construction process. It also demonstrates the franchisee's compliance with the insurance requirements outlined in the franchise agreement. The insurance policies must be written by an insurance company acceptable to Crave with a rating of "A-" or higher with A.M. Best Company.

In addition to the written certification, Crave may request additional copies of the franchisee's insurance policies or certificates of insurance, as well as copies of all approvals, clearances, permits, and certifications. Furthermore, at least ten days before construction begins, the franchisee must deliver Certificates of Insurance evidencing proper coverage with the required limits and evidence of waiver to Crave. This proactive approach helps to mitigate potential risks and ensures that the franchisee is adequately insured throughout the construction phase and the term of the franchise agreement.