Are Crisp & Green franchisees required to name Crisp & Green as an additional insured on their insurance policies?
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 / worke
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 are required to name Crisp & Green and other designated parties as additional insureds on their insurance policies. Franchisees must secure and maintain specific types and amounts of insurance coverage from an approved supplier. Currently, Christensen Group Insurance is the only approved supplier, with whom Crisp & Green has developed a custom insurance package that meets their requirements.
Before commencing operations, upon annual insurance renewal, or within 10 days of a request from Crisp & Green, franchisees must provide evidence of their insurance coverage. The minimum insurance requirements include all risks property insurance, comprehensive general liability insurance with $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.
This requirement ensures that Crisp & Green is protected from potential liabilities arising from the franchisee's operations. By mandating specific coverage types and limits, Crisp & Green aims to mitigate risks and maintain a consistent level of protection across all franchise locations. The use of an approved supplier allows Crisp & Green to ensure that the insurance policies meet their standards and provide adequate coverage. Franchisees should factor in these insurance costs when evaluating the overall investment required to start and operate a Crisp & Green franchise.