Does Crepe De Licious have the right to require franchisees to obtain insurance from approved suppliers?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
You must obtain and maintain, at your own expense, the insurance coverage we require, and satisfy other insurance-related obligations.
We reserve the right to require you to obtain insurance from our approved suppliers.
Please note that if you have had prior issues or claims from previous operations unrelated to the operation of a Crepe de licious Business, your rates may be significantly higher than those estimated above.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT YOUR ESTIMATED INITIAL INVESTMENT (FDD pages 18–25)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, franchisees must obtain and maintain the insurance coverage that Crepe De Licious requires at their own expense and satisfy all other insurance-related obligations. Crepe De Licious retains the right to mandate that franchisees secure their insurance from suppliers that they have approved.
This means that as a Crepe De Licious franchisee, you are responsible for covering the costs of your own insurance and adhering to all insurance requirements set by the franchisor. Furthermore, Crepe De Licious has the authority to dictate where you must purchase your insurance, limiting your options to their approved suppliers.
The estimated initial investment for insurance ranges from $4,000 to $7,000, payable as incurred and as agreed upon with insurance providers or approved suppliers. It is important to note that prior issues or claims from previous operations unrelated to Crepe De Licious could significantly increase your insurance rates. Therefore, prospective franchisees should factor in these potential variations in cost when assessing their initial investment.