When must an Antioch Pizza Shop franchisee's required insurance coverage commence?
Antioch_Pizza_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
izza Shop restaurant owned by you for the commissary.
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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 no later than the date of your purchase of the Food Truck/Trailer or execution of a lease for the commissary. Insurance costs depend on policy limits, types of policies, nature and value of physical assets, gross revenue, number of employees, location, business assets to be covered, and other factors bearing on risk exposure. The estimate covers through the first 3 months of operations. 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 this aspect with your insurance broker or provider.
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- This estimate covers the costs of the required point of sale system for the Food Truck/Trailer and the required computer system for the office (See Item 11) and other equipment and supplies beyond the equipment needed to be installed on the Food Truck/Trailer or at the commissary included in the estimates above.
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- The costs for professional services will vary depending on the degrees to which your professional advisors (e.g., your accountant, and your attorney) will be involved. Further, this estimate includes the initial costs for meeting the requirements for and obtaining necessary permits or licenses for operating a Food Truck/Trailer in your area.
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- These miscellaneous start-up costs are our estimate of the additional funds required to operate through the first 3 months after opening the Antioch Pizza Shop Business, including wages paid to employees but not including any owner's draw. You may have additional expenses in starting the business.
Source: Item 7 — Estimated Initial Investment (FDD pages 17–24)
What This Means (2025 FDD)
According to the 2025 Antioch Pizza Shop FDD, the commencement date for required insurance coverage depends on the type of franchise. For a traditional Antioch Pizza Shop restaurant, insurance coverage must begin as of the date the franchisee signs a lease. For a Food Truck/Trailer franchise, the insurance coverage must commence no later than the date of the purchase of the Food Truck/Trailer or execution of a lease for the commissary.
Regardless of the franchise type, Antioch Pizza Shop requires franchisees to purchase and maintain insurance that covers both the franchisee, Antioch Pizza Shop, and any other designated parties. The cost of this insurance will vary based on factors such as policy limits, the types of policies, the value of physical assets, gross revenue, the number of employees, the location, and other risk-related elements. The FDD estimates cover the first three months of operation.
If an Antioch Pizza Shop franchisee plans to sell beer and wine, they must also obtain dram shop (liquor liability) insurance, which is estimated to cost $3,000 per year, but this cost is not included in the initial investment estimates. The FDD advises franchisees to discuss potential premium refunds with their insurance broker or provider, as some portions of insurance premiums may be refundable under certain circumstances. Franchisees should factor these insurance requirements and costs into their initial investment and ongoing operational expenses.