When must the required insurance coverage commence for an Antioch Pizza Shop franchise?
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. Discu
Source: Item 7 — Estimated Initial Investment (FDD pages 17–24)
What This Means (2025 FDD)
According to the 2025 FDD, Antioch Pizza Shop franchisees operating a standard dine-in or take-out/delivery restaurant must have their required insurance coverage in effect as of the date they sign a lease. For franchisees operating a food truck or trailer, 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.
Insurance coverage is a crucial aspect of operating an Antioch Pizza Shop franchise, protecting both the franchisee and the franchisor from potential liabilities. The FDD emphasizes that franchisees must secure insurance from a company approved by Antioch Pizza Shop, ensuring that the coverage meets the franchisor's standards. The cost of insurance will vary based on several factors, including policy limits, the types of policies, the value of physical assets, gross revenue, the number of employees, the location, and other elements influencing risk exposure.
The FDD indicates that the estimated initial investment includes coverage for the first three months of operation. Additionally, if an 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, although this cost is not included in the initial investment estimates. Franchisees should consult with their insurance broker or provider to understand if any portion of their insurance premiums may be refundable under certain circumstances. The FDD also lists the insurance expenditure for a food truck/trailer as being between $2,000 and $3,000.