When is payment for insurance due for an All Team agency?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF EXPENDITURE | AMOUNT | METHOD OF PAYMENT | WHEN DUE | TO WHOM PAYMENT IS TO BE MADE |
|---|---|---|---|---|
| Insurance | $4,000 - $7,000 | Lump sum | Prior to Opening | Insurance companies |
| (Note 5) |
Note 5 – Insurance. The cost of insurance, especially the worker's compensation component can vary widely depending on the location of your Agency. This amount listed in the chart represent the deposit you will need to pay in order to obtain the insurance.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 13–15)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, insurance payments, estimated between $4,000 and $7,000, are due prior to opening the agency. This payment is considered a lump sum and is to be paid to insurance companies. Note 5 clarifies that this amount represents the deposit needed to obtain insurance, with the actual cost potentially varying based on the agency's location, particularly concerning worker's compensation.
For a prospective All Team franchisee, this means allocating funds for insurance coverage as part of the initial investment. Securing insurance is a prerequisite for commencing operations, so franchisees must factor this expense into their pre-opening budget. The FDD highlights the variability in insurance costs, advising franchisees to investigate local insurance rates to refine their budget estimates.
It is common practice in franchising to require franchisees to secure adequate insurance coverage before commencing operations, ensuring both the franchisee and franchisor are protected from potential liabilities. The initial insurance deposit, as outlined in the All Team FDD, aligns with this standard practice. Franchisees should consult with insurance professionals to determine the specific coverage requirements for their All Team agency and obtain accurate cost estimates for their location.