What are the requirements for Workers Compensation coverage for a Crave Cookies franchise?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
(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.
(c) Franchisee shall provide Certificates of Insurance evidencing the required coverage to Crave Cookies Franchising prior to opening and upon annual renewal of the insurance coverage, as well as at any time upon request of Crave Cookies Franchising.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, franchisees must obtain and maintain workers' compensation coverage as required by state law. This means the specific requirements for workers' compensation insurance, such as coverage amounts and specific provisions, are determined by the laws of the state in which the franchise is located.
In addition to workers' compensation, Crave Cookies requires franchisees to maintain other insurance policies, including business interruption insurance covering at least 12 months of income, commercial general liability insurance with a $1,000,000 single limit per occurrence and a $2,000,000 aggregate limit, and business automobile liability insurance of at least $1,000,000. However, the additional stipulations listed for other insurance policies do not apply to Workers Compensation.
It is important for prospective Crave Cookies franchisees to consult with an insurance professional to ensure they understand and meet all the insurance requirements, including the specific workers' compensation laws in their state. Franchisees must provide certificates of insurance to Crave Cookies Franchising before opening and upon annual renewal of the insurance coverage, as well as at any time upon request.