What is the estimated range for insurance costs for an Annex Brands franchise?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
. The estimated annual premium for the above coverage is about $1,500 to $5,000. The annual premium for workers' compensation insurance is based on employee payroll. Rates may vary from state to state. Most state insurance carriers offer this coverage subject to an annual minimum premium of about $1,000. In addition to carrying other insurance described in the franchise agreement, you must 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 generally are from $.55 to $1.75 per $100 of property valuation, packaging and shipping charges. Typically, this expense is passed through to the customer after being marked up by you, is billed to the customer at the time of shipment, and is based on the carrier used, whether the shipment is domestic or international, the declared value of the items tendered for shipping and the packaging and shipping charged to the customer. In our sole discretion, we may increase the rate if you have a high number of claims due to improper packaging and shipping standards (generally, $0.72 to $2.28 per $100 of property valuation, shipping and packaging charges) after at least 15 days' notice to you. Premiums and insurance programs are subject to change after at least 15 days' notice to yo
Source: Item 7 — Estimated Initial Investment (FDD pages 32–39)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, the estimated annual premium for required insurance coverage is between $1,500 and $5,000. This figure excludes workers' compensation, as its premium is based on employee payroll and can vary by state, with most states having a minimum annual premium of about $1,000.
Annex Brands franchisees must maintain comprehensive general liability insurance with a limit of not less than $2,000,000 per occurrence and $4,000,000 aggregate. They also need 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 state maximum if lower) and property insurance covering 100% of the actual replacement cost, including coverage for others' property with a minimum limit of $400,000, are also required. Business interruption coverage for at least 24 months and employee dishonesty coverage ($25,000 limit) are also necessary.
If a franchisee chooses to provide expanded services like household moving, they must also carry employment practices insurance of at least $500,000 per incident and $1,000,000 in the aggregate, along with an umbrella policy of at least $2,000,000. Flex retail locations must have a "Bailee's" coverage insurance policy with minimum limits of $400,000 for personal property coverage at the center, another location, and during transportation. Franchisees must participate in any Annex Brands group-wide insurance program for small parcel, freight, or transit damage, with premiums ranging from $.55 to $1.75 per $100 of valuation, which is typically passed on to the customer. These rates may increase if a franchisee has a high number of claims due to improper packaging.
It is important to note that Annex Brands requires franchisees to add Annex Brands and its affiliates as additional insureds on their insurance policies, excluding workers' compensation and similar policies. All insurance must be issued by companies with a Best's rating of not less than A, using the correct company classification for retail stores specializing in business support and related services. Premiums and insurance programs are subject to change with at least 15 days' notice.