What is the estimated range for three months of insurance for a leased Aplus store?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
| Fee | | | | |
| Type of Expenditure 1 | Leased APLUS Store | Non-Leased APLUS Store (Conversion) | Non-Leased APLUS Store (New) | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|---|---|
| Interior | N/A | $12,000 to $ | $12,000 to $ | As Arranged | As Arranged | Vendors |
| Graphics 8 | 50,000 | 50,000 | and/or Us | |||
| Exterior | N/A | $16,000 to $ | $16,000 to $ 45,000 | As Arranged | As Arranged | Vendors |
| Graphics 8 | 45,000 | and/or Us | ||||
| Initial Opening | $40,000 to $ | $40,000 to $ 121,000 | $40,000 to $ | As Arranged | As Arranged | Vendors |
| Inventory 9 | 121,000 | 121,000 | ||||
| Permits (Business) | $2,000 to $ | $2,000 to $ | $2,000 to $ | As Arranged | As Arranged | Issuing |
| 11,000 | 11,000 | 11,000 | Agencies | |||
| Permits (Beer/Wine) 10 | $500 to $ | $500 to $ | $500 to $ | As Arranged | As Arranged | Issuing |
| 12,000 | 12,000 | 12,000 | Agencies | |||
| Technology Fee | $990 to $1,800 | $990 to $1,800 | $990 to $1800 | As Arranged | As Arranged | Designated supplier and/or Us |
| Uniforms | $150 to $ 1,100 | $150 to $ 1,100 | $150 to $ 1,100 | As Arranged | As Arranged | Vendors |
| Insurance (Three months) | $3,750 to $ 6,050 | $3,750 to $ 6,050 | $3,750 to $ 6,050 | As Arranged | As Arranged | Insurance Carrier |
| Collateral | $10,000 to | $10,000 to | $10,000 to | Lump Sum | Prior to opening | Us |
| Deposit 11 | $20,000 | $20,000 | $20,000 | |||
| Misc. |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 28–33)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the estimated initial investment for three months of insurance for a leased Aplus store ranges from $3,750 to $6,050. This cost is categorized as 'Insurance (Three months)' in the document's table outlining estimated initial investments. The method of payment is 'As Arranged,' and the payment is due 'As Arranged' to the 'Insurance Carrier.'
This insurance cost is part of the broader initial investment required to start an Aplus franchise. The FDD specifies that these figures are estimates, and the actual cost may vary. Factors influencing insurance costs could include the location of the store, the coverage levels, and the insurance provider selected.
Prospective franchisees should factor this expense into their initial budget. It is important to note that this is just an estimate for the first three months; franchisees will need to budget for ongoing insurance expenses as part of their operating costs. Aplus franchisees should consult with insurance professionals to obtain accurate quotes and understand the specific insurance requirements for their Aplus store.
It is also important to note that the cost for insurance is the same for both leased and non-leased Aplus stores. This suggests that the primary factors influencing the insurance premium are related to the business operations and coverage requirements, rather than the property ownership structure.