What is the range of the estimated initial investment for insurance for an Annex Brands franchise, as detailed in Item 7?

According to Annex Brands' 2025 Franchise Disclosure Document, the estimated initial investment for insurance ranges from $0 to $7,000 for a standard, flex, or express retail center. For a conversion location, the estimated initial investment for insurance ranges from $2,500 to $7,000. This cost is paid as agreed upon with the insurance company and is due as incurred.

Item 7 also provides additional details regarding insurance requirements. Franchisees must maintain comprehensive general liability insurance with a limit of not less than $2,000,000 per occurrence and $4,000,000 aggregate. Motor vehicle liability coverage must include bodily injury and property damage on all owned, non-owned, leased, hired, rented, or borrowed motor vehicles having a combined single limit of at least $2,000,000 resulting from each occurrence. Notary professional liability insurance of at least $500,000 or the maximum permitted by the state if less than $500,000 must be maintained. Property insurance for the retail center must provide coverage for any loss included on the standard "Causes of Loss-Special Form," including vandalism, malicious mischief, and theft. The policies must include coverage in an amount not less than 100% of the actual replacement cost. The coverage also must include property of others in your care, custody or control, with a minimum limit of $400,000. Coverage for business interruption also must 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 than 24 months. Coverage for employee dishonesty ($25,000 limit) must be maintained. 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.

If a franchisee is operating a flex retail location, they must also have a "Bailee's" coverage insurance policy that is in addition to small parcel, freight, or transit damage insurance. The "Bailee's" policy must include coverage of personal property of others in an insured's care, custody and control that is temporarily at an insured's center with a minimum limit of $400,000, coverage of personal property of others in an insured's care, custody and control at another location with a minimum limit of $400,000, and coverage that includes the transportation of personal property of others while in an insured's auto or truck with a minimum limit of $400,000.

If a franchisee chooses to provide expanded services of household moving and other relocation products and services, they also must have employment practices insurance (including sexual harassment, wrongful termination and discrimination coverage) in the amount of at least $500,000 for each incident and $1,000,000 in the aggregate, and an umbrella policy (covering general liability, auto, and employer's liability) with a limit of at least $2,000,000. 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. Most state insurance carriers offer this coverage subject to an annual minimum premium of about $1,000.