Can Crepe De Licious increase the amounts of coverage required under the insurance policies?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
pply companies.
You must obtain the insurance coverage required under the Franchise Agreement. The insurance company must be authorized to do business in the state where your Crepe de licious Business is located, and must be approved by us. It must also be rated "A" or better by A.M. Best & Company, Inc. We may periodically increase the amounts of coverage required under these insurance policies and/or require different or additional insurance coverage at any time. All insurance policies must name us and any affiliates we designate as additional named insured parties. We currently require you to maintain the following insurance coverages: (1) commercial general liability insurance with limits of at least $2 million per occurrence, at least $4 million aggregate, and at least $2 million per person, with $5,000 per person medical benefits, and a maximum deductible of $2,500; (2) all risks coverage insurance on all furniture, fixtures, equipment, inventory, supplies and other property used in the operation of the Restaurant (including flood and/or earthquake coverage where there are known risks) for full replacement value; (3) workers compensation insurance consistent with applicable law; (4) data theft and cybersecurity; and (5) automobile (covering all vehicles used for Food Trucks and in the delivery of products to and from the Franchised Business including owned, hired, or non-owned vehicles) liability insurance with limits not less than $1,000,000 per occurrence and $2,000,000 aggregate. We reserve the right to require that
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 25–28)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, Crepe De Licious has the right to periodically increase the required amounts of insurance coverage, or require different or additional insurance coverage at any time. Franchisees must obtain insurance coverage from a company authorized to do business in the state where their Crepe De Licious Business is located and approved by Crepe De Licious, with a rating of "A" or better by A.M. Best & Company, Inc. All insurance policies must name Crepe De Licious and any designated affiliates as additional named insured parties.
Currently, Crepe De Licious requires franchisees to maintain specific insurance coverages, including commercial general liability insurance with limits of at least $2 million per occurrence and $4 million aggregate, among other requirements. They also require all risks coverage, workers compensation, data theft and cybersecurity, and automobile liability insurance with limits not less than $1,000,000 per occurrence and $2,000,000 aggregate.
This means that a Crepe De Licious franchisee could face increased costs during the term of their Franchise Agreement if Crepe De Licious decides to raise the required coverage amounts or mandate new types of insurance. Franchisees must comply with these changes. Crepe De Licious also reserves the right to require franchisees to obtain insurance coverage from their approved vendors, potentially limiting the franchisee's choice of insurance providers.