factual

What is the minimum aggregate limit for Commercial General Liability insurance required by Crave Cookies?

Crave_Cookies Franchise · 2025 FDD

Answer 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 must 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 required coverage is $1,000,000 single limit per occurrence and $2,000,000 aggregate limit. Additionally, the policy must list Crave Cookies and its affiliates as additional insureds and include a waiver of subrogation in their favor. The policy must also be primary and non-contributing with any insurance carried by Crave Cookies or its affiliates.

Crave Cookies also requires that they receive 30 days' prior written notice of cancellation of the insurance policy. Franchisees must also obtain other types of insurance, including "Special" causes of loss coverage, business interruption insurance, Business Automobile Liability insurance, and Workers Compensation coverage as required by state law. These insurance requirements are typical in franchising, as they protect both the franchisee and the franchisor from potential liabilities.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.