Who must the insurance policy for an Antioch Pizza Shop franchise insure?
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
Source: Item 7 — Estimated Initial Investment (FDD pages 17–24)
What This Means (2025 FDD)
According to the 2025 FDD, Antioch Pizza Shop franchisees must secure insurance policies that cover themselves, Antioch Pizza Shop, and any other individuals or entities that Antioch Pizza Shop designates. This requirement ensures that the franchisee has adequate coverage to protect against potential liabilities and risks associated with operating the business.
The insurance coverage must be in effect no later than the date of purchase of the Food Truck/Trailer or execution of a lease for the commissary, or as of the date you sign a lease for a dine-in location. The FDD specifies that the insurance must be maintained in full force and effect throughout the term of the franchise agreement. The costs associated with insurance will vary based on several factors, including policy limits, types of policies, the nature and value of physical assets, gross revenue, the number of employees, the location, and other elements influencing risk exposure.
For a Food Truck/Trailer franchise, the estimated initial investment for insurance ranges from $2,000 to $3,000, covering the first three months of operation. Additionally, if the Antioch Pizza Shop franchisee intends to sell beer and wine, they must also acquire dram shop (liquor liability) insurance, which is estimated to cost $3,000 per year and is not included in the initial estimate. Franchisees should consult with their insurance broker or provider to discuss potential refunds on insurance premiums under certain conditions.