What is the dependency between selling beer/wine and insurance costs for an Antioch Pizza Shop?
Antioch_Pizza_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
ns at an estimated cost of $50,000 per oven.
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- You must purchase and maintain in full force and effect, at your expense and from a company we approve of, insurance that insures both you and us and any other persons we designate by name. The required insurance coverage must commence as of the date you sign a lease. Insurance costs depend on policy limits, types of policies, nature and value of physical assets, gross revenue, number of employees, square footage, location, business contents, and other factors bearing on risk exposure. The estimate covers through the first 3 months of operation. Fees are payable as directed by your insurance provider. If you sell beer and wine, you will also need to purchase dram shop (liquor liability) insurance. The estimated cost which is not included in the estimate above is $3,000 per year. Some portion of your insurance premiums may be refundable under certain circumstances. Discuss t
Source: Item 7 — Estimated Initial Investment (FDD pages 17–24)
What This Means (2025 FDD)
According to Antioch Pizza Shop's 2025 Franchise Disclosure Document, if a franchisee intends to sell beer and wine, they must purchase dram shop (liquor liability) insurance. The FDD indicates that the estimated cost for this insurance, which is not included in the general insurance estimate, is $3,000 per year.
The general insurance costs for an Antioch Pizza Shop franchise depend on several factors, including policy limits, types of policies, the nature and value of physical assets, gross revenue, the number of employees, square footage, location, business contents, and other risk exposure factors. The estimate provided covers the first three months of operation. Fees are payable as directed by the insurance provider.
Prospective franchisees should consider the additional $3,000 annual cost for dram shop insurance if they plan to sell beer and wine at their Antioch Pizza Shop location. It is also advisable to discuss potential refunds on insurance premiums with an insurance broker or provider, as some portions of the premiums may be refundable under certain circumstances. Understanding these insurance requirements and costs is crucial for budgeting and financial planning when starting an Antioch Pizza Shop franchise.