What is the minimum aggregate limit for Commercial General Liability insurance that Crave Cookies franchisees must maintain?
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's 2025 Franchise Disclosure Document, franchisees are required to maintain Commercial General Liability insurance with specific coverage limits. This insurance must include products liability coverage and broad form commercial liability coverage, written on an "occurrence" policy form.
The minimum coverage required is $1,000,000 single limit per occurrence and $2,000,000 aggregate limit. This means that for each individual incident, the policy must cover up to $1,000,000, and the total coverage available under the policy for all incidents during the policy period is $2,000,000.
In addition to the coverage limits, Crave Cookies requires that the insurance policy list Crave Cookies and its affiliates as additional insured parties. The policy must also include a waiver of subrogation in favor of Crave Cookies and its affiliates, meaning the insurance company cannot pursue Crave Cookies to recover claim payments. Furthermore, the franchisee's policy must be primary and non-contributing with any insurance carried by Crave Cookies, and Crave Cookies must receive 30 days' prior written notice of any policy cancellation. These stipulations ensure that Crave Cookies is protected under the franchisee's insurance policy and receives adequate notice of any changes to the policy.