What insurance coverage is a Crepe De Licious franchisee required to obtain?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
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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, franchisees must obtain specific insurance coverage, and the insurance company must be authorized to operate in the state where the Crepe De Licious business is located and approved by Crepe De Licious. The insurance provider must have a rating of "A" or better from A.M. Best & Company, Inc. Crepe De Licious can periodically increase the required coverage amounts or mandate different or additional insurance at any time. All policies must name Crepe De Licious and any designated affiliates as additional insured parties.
Currently, Crepe De Licious requires franchisees to maintain several types of insurance coverage. This includes commercial general liability insurance with limits of at least $2 million per occurrence, an aggregate of at least $4 million, and at least $2 million per person, including $5,000 per person for medical benefits, with a maximum deductible of $2,500. Franchisees also need all-risks coverage insurance for the full replacement value of all furniture, fixtures, equipment, inventory, supplies, and other property used in the restaurant's operation, including flood and/or earthquake coverage where applicable.
Additionally, franchisees must have workers' compensation insurance consistent with applicable law, data theft and cybersecurity coverage, and automobile liability insurance. The automobile liability insurance must cover all vehicles used for food trucks and in the delivery of products, including owned, hired, or non-owned vehicles, with limits of not less than $1,000,000 per occurrence and $2,000,000 aggregate. Crepe De Licious retains the right to require franchisees to obtain some or all insurance coverage from their approved vendors, and these insurance requirements are subject to change during the term of the Franchise Agreement.
It is important for prospective franchisees to understand these insurance requirements, as they represent a significant ongoing cost of operating a Crepe De Licious franchise. Franchisees should factor these costs into their financial projections and ensure they can meet these obligations. Furthermore, the franchisor's ability to change these requirements during the term of the agreement introduces an element of uncertainty that franchisees should be prepared for.