What minimum amount of Business Automobile Liability insurance is required for a Crave Cookies franchise, including owned, leased, non-owned, and hired automobiles?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
ommercial 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; and
- (v) Workers Compensation coverage as required by state law.
- (b) Franchisee's policies (other than Workers Compensation) must (1) list Crave Cookies Franchising and its affiliates as an additional insured, (2) include a waiver of subrogation in favor of Crave Cookies Franchising and its affiliates, (3) be primary and non-contributing with any insurance carried by Crave Cookies Franchising or its affiliates, and (4) stipulate that Crave Cookies Franchising shall receive 30 days' prior written notice of cancellation.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, franchisees must maintain Business Automobile Liability insurance. This insurance must cover owned, leased, non-owned, and hired automobiles. The minimum coverage amount required is $1,000,000.
This requirement ensures that the Crave Cookies franchisee is adequately protected against potential liabilities arising from vehicle-related incidents. This coverage extends to various types of vehicle usage, whether the franchisee owns the vehicles, leases them, uses personal vehicles for business purposes, or hires vehicles.
Furthermore, the Crave Cookies FDD specifies that the franchisee's insurance policies (excluding Workers Compensation) must adhere to certain conditions. These policies must list Crave Cookies Franchising and its affiliates as additional insured parties. The policies must also include a waiver of subrogation in favor of Crave Cookies Franchising and its affiliates. The franchisee's insurance must be primary and non-contributing with any insurance carried by Crave Cookies Franchising or its affiliates. Finally, the insurance policy must stipulate that Crave Cookies Franchising will receive 30 days' prior written notice of cancellation.
To ensure compliance, the franchisee must provide Certificates of Insurance to Crave Cookies Franchising before opening the franchise and upon annual renewal of the insurance coverage. These certificates serve as proof of the required coverage and must be provided at any time upon Crave Cookies Franchising's request. This ensures that Crave Cookies maintains oversight of its franchisees' insurance coverage.