What is the estimated cost range for insurance for an Annex Brands Express Retail Center?

According to Annex Brands' 2025 Franchise Disclosure Document, the estimated annual premium for insurance coverage for an Express Retail Center is approximately $1,500 to $5,000. This coverage includes comprehensive general liability insurance with limits of not less than $2,000,000 per occurrence and $4,000,000 aggregate, motor vehicle liability coverage with a combined single limit of at least $2,000,000 per occurrence, Notary professional liability insurance of at least $500,000 (or the maximum permitted by the state if less), and property insurance covering losses included on the standard "Causes of Loss-Special Form," including vandalism, malicious mischief, and theft. The property insurance must cover 100% of the actual replacement cost, including property of others in the franchisee's care, custody, or control, with a minimum limit of $400,000. Coverage for business interruption must also be provided on an "actual loss sustained" basis for a period of not less than 24 months (or the maximum permitted by the state if less), along with coverage for employee dishonesty ($25,000 limit).

The FDD also states that franchisees must maintain any workers' compensation, employer's liability, or comparable insurance as required by law in their jurisdiction, or additional types and coverage amounts as Annex Brands may periodically designate. For existing businesses converting to an Annex Brands franchise, the franchisee may already have the required insurance. If so, they do not need to acquire additional insurance, but must add Annex Brands and its affiliates as additional insureds to their policies (except for workers' compensation, employer's liability, and employment practices insurance policies).

The annual premium for workers' compensation insurance is based on employee payroll, with most state insurance carriers offering this coverage subject to an annual minimum premium of about $1,000. Franchisees must also participate in any Annex Brands group-wide or other designated insurance program that is available to franchisees regarding small parcel, freight, or transit damage and related risks. Premiums for this coverage generally range from $.55 to $1.75 per $100 of property valuation, packaging, and shipping charges, typically passed on to the customer. Note that all insurance must be issued by responsible insurance companies with a Best's rating of not less than A, and coverage must be issued using the correct company classification for retail stores specializing in business support, mailbox rental, and related services.