What is the estimated range for insurance costs within the initial investment for a Crisp & Green franchise?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
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- (10) You must obtain and maintain certain types and amounts of insurance coverage from an approved supplier of insurance. You must use our sole approved supplier of insurance. Insurance costs depend on policy limits, types of policies, the nature and value of physical assets, gross sales, number of employees, square footage, location, and other factors affecting risk exposure. The estimate contemplates insurance costs for three months. You should check with your insurance agent regarding any additional insurance you might wish to obtain above our stated minimums.
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 co
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 22–26)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, franchisees must obtain and maintain specific insurance coverage from an approved supplier. The FDD indicates that insurance costs are influenced by several factors, including policy limits, types of policies, the value of physical assets, gross sales, the number of employees, the square footage of the location, and other elements affecting risk exposure. The initial investment estimate includes insurance costs for the first three months of operation.
Crisp & Green specifies minimum insurance requirements, including 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 and $3,000,000 annual aggregate).
Prospective franchisees should consult with their insurance agent to determine if additional coverage beyond the minimum requirements is necessary. Given the variability in factors affecting insurance costs, obtaining accurate quotes is essential for budgeting and financial planning. The FDD emphasizes using Crisp & Green's sole approved insurance supplier, which may limit options but ensures compliance with the brand's standards.
While the FDD lists the required insurance types and coverage amounts, it does not provide a specific estimated range for these costs within the initial investment. Therefore, prospective franchisees should contact Crisp & Green directly to obtain an estimated range for insurance costs.