Are Crave Cookies franchisees required to purchase a vehicle to operate the franchise?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
e document as Exhibit D).
- B. Insurance. You must obtain insurance as described in the Franchise Agreement and in our Brand Standards Manual, which includes (i) "Special" causes of loss coverage forms, including fire and extended coverage, crime, vandalism, and malicious mischief, on all property of the Business, for full repair and replacement value (subject to a reasonable deductible); (ii) Business interruption insurance covering at least 12 months of income; (iii) Commercial General Liability insurance, including products liability coverage, and broad form commercial liability coverage, written on an "occurrence" policy form in an amount of not less than $1,000,000 single limit per occurrence and $2,000,000 aggregate limit, (iv) Business Automobile Liability insurance including owned, leased, non-owned and hired automobiles coverage in an amount of not less than $1,000,000, (you are not required to purchase a vehicle but if you purchase, lease, use non-owned or hired automobiles, you must obtain Business Automobile Liability insurance) and (v) Workers Compensation coverage as required by state law. Your policies (other than Workers Compensation) must list us and our affiliates as an additional insured, must include a waiver of subrogation in favor of us and our affiliates, must be primary and non-contributing with any insurance carried by us or our affiliates, and must stipulate that we receive 30 days' prior writt
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 17–19)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, franchisees are not required to purchase a vehicle. However, if a franchisee chooses to purchase, lease, use non-owned, or hire automobiles, they must obtain Business Automobile Liability insurance with a minimum coverage of $1,000,000 per occurrence.
This requirement ensures that Crave Cookies franchisees who use vehicles in their business operations are adequately insured against potential liabilities. The insurance coverage must include owned, leased, non-owned, and hired automobiles, providing comprehensive protection.
The policy must list Crave Cookies and its affiliates as additional insured parties and include a waiver of subrogation in their favor. Additionally, the insurance must be primary and non-contributing with any insurance held by Crave Cookies or its affiliates. The insurance provider must also give Crave Cookies 30 days' prior written notice of cancellation. These stipulations protect Crave Cookies from potential liabilities arising from the franchisee's vehicle use.