Is Christensen Group Insurance the only approved supplier of insurance for Crisp & Green franchisees?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
ifications.
Insurance
You must obtain and maintain certain types and amounts of insurance coverage from an approved supplier of insurance. We have developed a custom insurance package with Christensen Group Insurance that meets our insurance requirements, and which is available for you to purchase. Christensen Group Insurance is currently the only approved supplier of insurance. All insurance policies must name us and others we designate as additional insureds. You must provide us with evidence of your insurance coverage before you begin operation of your Franchised Restaurant, upon annual renewal of your insurance, or otherwise within 10 days of our demand for proof.
Our current minimum insurance requirements are as follows: (i) all risks property insurance coverage in full replacement value of any leasehold improvements, furniture, fixtures and equipment, and including business income and extra expense; (ii) comprehensive general liability insurance with limits of at least $1,000,000 per occurrence and $2,000,000 in the general aggregate, including tenant's legal liability with limits of at least $300,000, personal and advertising injury with limits of at least $1,000,000, and products and completed operations in the aggregate with limits of at least $2,000,000; (iii) automobile liability insurance, including owned (if applicable), non-owned and hired vehicle coverage with a combined single limit of at least $1,000,000; (iv) worker's compensation and employer's liability insurance with employer's liability limits of $500,000 per accident, $500,000 in the aggregate, and $500,000 for disease, as well as any other insurance required by law; (v) excess/umbrella liability coverage with a limit of $3,000,000 per occurrence, $3,000,000 annual aggregate, that sits in excess of general liability, auto liability, and employer's liability / worker's compensation coverage.
Approval of Alternative Suppliers or Brands
If you propose to use any brand and/or supplier which is not then approved by us, you must first notify us and submit sufficient information, specifications and samples concerning such brand and/or supplier so that we can decide whether such brand complies with our specifications and standards and/or such supplier meets our approved supplier criteria. You must pay us a $2,500 fee at the time you submit any request to approve an unapproved supplier or product as reasonable fees to cover our investigation costs. We will notify you of our decision within a reasonable period of time. We may prescribe procedures for the submission of requests for approval and impose obligations on suppliers, which we may require be incorporated in a written agreement. We may impose limits on the number of suppliers (which may include us or our affiliates) and/or brands for any of the foregoing items. In the event you use any brand or supplier that is not then approved by us, we may charge you up to $1,500 per day until such unauthorized use ceases.
We apply the following general criteria in approving a proposed supplier or brand: (i) the ability to make products or provide services in conformity with our specifications; (ii) the reputation and integrity of the supplier or brand; (iii) the financial condition and insurance coverage of the supplier; and (iv) System uniformity. Determinations of whether a supplier or brand meets our specifications and quality and safety standards will be made by us in our sole discretion. We have no obligation to approve any supplier or brand. We may limit the number of approved suppliers or brands with whom you may deal, designate sources that you must use, and/or refuse any of your requests for any reason, including that we have already designated an exclusive source (which in the future might be us or our affiliate) for a particular product or service or if we believe that doing so is in the best interests of the System. We are not required to make available to you or to any supplier our criteria for product or supplier approval if we deem such criteria to be confidential.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 26–31)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, franchisees must secure insurance coverage from an approved supplier. Currently, Christensen Group Insurance is the only approved insurance supplier. Crisp & Green franchisees are required to provide evidence of their insurance coverage before starting operations, upon annual renewal, or within 10 days of Crisp & Green's demand for proof of coverage.
The required minimum insurance coverage includes all risks property insurance, comprehensive general liability insurance with limits of at least $1,000,000 per occurrence and $2,000,000 in the general aggregate, automobile liability insurance with a combined single limit of at least $1,000,000, worker's compensation and employer's liability insurance with employer's liability limits of $500,000 per accident, $500,000 in the aggregate, and $500,000 for disease, and excess/umbrella liability coverage with a limit of $3,000,000 per occurrence, $3,000,000 annual aggregate.
While Christensen Group Insurance is currently the only approved supplier, Crisp & Green franchisees can propose alternative insurance suppliers. To do so, they must notify Crisp & Green and submit sufficient information for review. A fee of $2,500 is required to cover investigation costs for any unapproved supplier or product. Crisp & Green will then decide whether the proposed supplier meets their criteria and standards.
Crisp & Green has the right to impose obligations on suppliers, limit the number of suppliers, designate exclusive sources, or refuse any requests for approval if it is in the best interests of the system. This means that while franchisees can suggest alternative suppliers, Crisp & Green retains ultimate control over supplier approval.