factual

What is the minimum coverage amount for Business Automobile 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's 2025 Franchise Disclosure Document, franchisees must maintain Business Automobile Liability insurance with a minimum coverage of $1,000,000. This insurance must cover owned, leased, non-owned, and hired automobiles. However, franchisees are only required to obtain this insurance if they purchase, lease, or use non-owned or hired automobiles for business purposes.

This requirement ensures that Crave Cookies franchisees are adequately protected against potential liabilities arising from vehicle-related accidents. The $1,000,000 minimum coverage suggests that Crave Cookies places a high priority on mitigating financial risks associated with automobile accidents. This level of coverage is fairly standard within the franchise industry, as it provides a reasonable buffer against significant claims.

Prospective Crave Cookies franchisees should factor in the cost of this insurance when evaluating the overall financial investment required to start and operate the franchise. Even if a franchisee does not initially own or lease a vehicle, they should consider the possibility of needing to use non-owned or hired automobiles in the future and budget accordingly. It is also important to note that the policy must list Crave Cookies and its affiliates as additional insured, include a waiver of subrogation, be primary and non-contributing with any insurance carried by Crave Cookies, and stipulate that Crave Cookies receive 30 days' prior written notice of cancellation.

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.