Who must be named as additional named insured parties on all Crepe De Licious 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, all insurance policies must name Crepe De Licious and any affiliates the company designates as additional named insured parties. This requirement ensures that Crepe De Licious has a direct stake in the franchisee's insurance coverage, protecting the brand from potential liabilities arising from the franchisee's operations.
Crepe De Licious requires franchisees to obtain specific insurance coverages, including commercial general liability insurance with limits of at least $2 million per occurrence and $4 million aggregate, along with other coverages like property insurance, workers compensation, data theft and cybersecurity, and automobile liability insurance. The franchisor also retains the right to increase the required coverage amounts or require different or additional insurance coverage at any time.
This requirement is fairly standard in franchising, as it allows the franchisor to protect its brand and system from potential financial losses due to franchisee activities. Franchisees should carefully review the insurance requirements and costs to ensure they can meet these obligations. Additionally, franchisees should confirm whether they are required to obtain insurance coverage from Crepe De Licious's approved vendors.