Can Crepe De Licious periodically require different or additional insurance coverage at any time?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
& 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 modify insurance requirements for franchisees. Specifically, Crepe De Licious may periodically increase the amounts of coverage required or mandate different or additional insurance coverage at any time during the franchise agreement. Franchisees are obligated to comply with these changes.
Currently, Crepe De Licious requires franchisees to maintain several insurance coverages. These include commercial general liability insurance with limits of at least $2 million per occurrence and $4 million aggregate, all risks coverage insurance for the full replacement value of property, workers compensation insurance, data theft and cybersecurity coverage, and automobile liability insurance with limits not less than $1,000,000 per occurrence and $2,000,000 aggregate.
This ability for Crepe De Licious to change insurance requirements means that a franchisee's costs for insurance could increase over time. It is also important to note that Crepe De Licious can require franchisees to obtain insurance coverage from their approved vendors. Franchisees should factor in potential future insurance cost increases when evaluating the financial feasibility of the franchise.