Who must the insurance policy for an Antioch Pizza Shop insure?
Antioch_Pizza_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
c ovens 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 this aspect with your insurance broker or provider.
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- The costs for professional services will vary depending on the degrees to which your professional advisors will be involved. This estimate includes the initial costs for (i) fees for accounting services, (ii) attorney's fees, (iii) architectural/engineering consultant's fees, and (iv) fees for preparation of plans and specifications to design the premises of the Antioch Pizza Shop Business in accordance with our System.
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- You must conduct adequate pre-opening local advertising at your sole expense, in accordance with our directions and assistance. You will determine the amount of preopening advertising that you must spend to adequately promote your Antioch Pizza Shop Business prior to opening.
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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 Antioch Pizza Shop's 2025 Franchise Disclosure Document, the insurance policy must insure the franchisee, Antioch Pizza Shop itself, and any other persons Antioch Pizza Shop designates by name. This requirement applies to both traditional restaurant locations and food truck/trailer operations.
This means that as a franchisee, you are required to obtain and maintain insurance coverage that protects not only your own business interests but also those of the franchisor. The specific individuals or entities designated by Antioch Pizza Shop to be included in the insurance policy will be communicated to you by the franchisor.
It is important for prospective franchisees to understand that the cost of insurance can vary significantly based on several factors, including policy limits, the types of policies required, the value of physical assets, gross revenue, the number of employees, the location of the business, and other factors that influence risk exposure. For example, the FDD notes that if you sell beer and wine, you will also need to purchase dram shop (liquor liability) insurance, which has an estimated cost of $3,000 per year. Franchisees should discuss insurance requirements and costs thoroughly with their insurance broker or provider to ensure they have adequate coverage and understand the associated expenses.