What 'causes of loss' coverage forms are required for all Crave Cookies business property?

According to Crave Cookies's 2025 Franchise Disclosure Document, franchisees must obtain and maintain specific insurance policies. If the insurance types and amounts are not specified in the manual, franchisees must maintain "Special" causes of loss coverage forms, including fire and extended coverage, crime, vandalism, and malicious mischief, on all business property. This coverage must be for the full repair and replacement value, though it may be subject to a reasonable deductible.

This requirement ensures that the Crave Cookies location is protected against a variety of potential losses, which could otherwise financially devastate the franchisee. The inclusion of fire, extended coverage, crime, vandalism, and malicious mischief highlights the range of risks that Crave Cookies considers important to mitigate. The coverage for full repair and replacement value aims to enable the franchisee to quickly recover from a loss and resume operations.

The allowance for a reasonable deductible means the franchisee will bear some initial cost in the event of a claim, which is a common practice in insurance policies. The specific deductible amount is not mentioned in this section, so it would be important for a prospective franchisee to clarify what Crave Cookies considers a 'reasonable' deductible. Franchisees should also confirm whether the insurance requirements are further detailed in the Crave Cookies manual, as the manual takes precedence over the minimum requirements listed in the FDD.

Overall, this insurance requirement is in place to protect both the franchisee and Crave Cookies from significant financial losses due to unforeseen events. Franchisees should carefully review their insurance options to ensure they meet the required coverage levels and understand the terms and conditions of their policies.