For how many months of income must Crave Cookies franchisees carry business interruption insurance?
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 required to maintain business interruption insurance covering at least 12 months of income. This insurance is designed to protect the franchisee's revenue stream in the event that the business is temporarily unable to operate due to unforeseen circumstances such as fire, natural disasters, or other covered events.
Business interruption insurance is a standard requirement in many franchise systems, as it helps to mitigate financial losses during periods of disruption. The specific amount of coverage required, in this case, 12 months of income, is intended to provide a sufficient buffer for the franchisee to recover and resume normal operations. This type of insurance coverage is crucial for protecting the franchisee's investment and ensuring the long-term viability of the Crave Cookies business.
In addition to business interruption insurance, Crave Cookies franchisees must also obtain other types of insurance, including property insurance, commercial general liability insurance, business automobile liability insurance, and workers' compensation coverage. These insurance policies must meet specific requirements outlined in the Franchise Agreement and Brand Standards Manual, such as listing Crave Cookies and its affiliates as additional insureds and including a waiver of subrogation. Franchisees should carefully review the insurance requirements to ensure they obtain adequate coverage and comply with the franchisor's standards.