What rating must the insurance company have for a Crepe De Licious franchise?
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, the insurance company providing coverage for a Crepe De Licious franchise must be authorized to conduct business in the state where the business is located and must be approved by Crepe De Licious. Furthermore, the insurance company must have a rating of "A" or better from A.M. Best & Company, Inc.
Crepe De Licious also has specific insurance coverage requirements. These include commercial general liability insurance with limits of at least $2 million per occurrence and $4 million aggregate, along with $2 million per person, including $5,000 per person for medical benefits, and a maximum deductible of $2,500. Additionally, franchisees must maintain all risks coverage insurance on all furniture, fixtures, equipment, inventory, supplies, and other property used in the operation, including flood and/or earthquake coverage where applicable, for full replacement value. Workers compensation insurance consistent with applicable law, data theft and cybersecurity coverage, and automobile liability insurance with limits not less than $1,000,000 per occurrence and $2,000,000 aggregate are also required.
Crepe De Licious retains the right to increase the required coverage amounts, require different or additional insurance coverage at any time, and require franchisees to obtain insurance coverage from their approved vendors. All insurance policies must name Crepe De Licious and any designated affiliates as additional named insured parties. These insurance requirements are subject to change during the term of the Franchise Agreement, and franchisees must comply with any such changes.