When must a Crisp & Green franchisee provide evidence of insurance coverage?

According to Crisp & Green's 2024 Franchise Disclosure Document, a franchisee must provide evidence of insurance coverage in three specific instances. First, evidence must be provided before the franchisee begins operation of their franchised restaurant. This ensures that the business is protected from day one. Second, evidence is required upon the annual renewal of the insurance policy, confirming continuous coverage. Finally, Crisp & Green can demand proof of insurance coverage at any time, and the franchisee must provide this evidence within 10 days of the demand.

Crisp & Green mandates that franchisees maintain specific types and amounts of insurance coverage from an approved supplier. Currently, Christensen Group Insurance is the only approved supplier, and Crisp & Green has developed a custom insurance package with them that meets their requirements. All insurance policies must name Crisp & Green and any other parties they designate as additional insureds, offering further protection to the franchisor.

The minimum insurance requirements include 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. Failing to provide evidence of coverage or maintain the required insurance could result in a breach of the franchise agreement.