What is the estimated range for initial insurance coverage for an Aunt Millies Bakeries franchise?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | Payee |
|---|---|---|---|---|
| Initial Franchise Fee1 | $30,000 to $100,000 | Lump sum | At closing | Us |
| Computer use2 | $455 ($35/week) | Weekly installments | As billed | Us |
| Sales/Use Tax3 | $27 to $39 ($2 to $3 weekly) | Weekly installments | As billed | Us |
| Vehicle4 | $2,500 to $55,000 | Lease or Purchase | As arranged | Non-affiliated third party vendor |
| Loan Fees to First | $0 to $800 | Lump Sum | At closing | First Capital |
| Capital5 | ||||
| Loan Origination Fee | $0 to $400 | Lump Sum | At closing | DSA |
| to DSA6 | ||||
| Products for 1 week | $3,000 to $25,000 | Lump Sum | Weekly | Us |
| (Inventory)7 | ||||
| Vehicle Maintenance8 | $156 to $780 | As needed | As needed | Third party vendor |
| Initial Insurance Coverage9 | $520 to $715 | Weekly installments | As billed | Non-affiliated third party insurer |
| Additional Funds10 | $330 to $3,305 | Not Applicable | Not Applicable | Not Applicable |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 16–17)
What This Means (2025 FDD)
According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, the estimated initial insurance coverage ranges from $520 to $715. This figure represents the estimated quarterly premium for the required comprehensive general liability, automobile liability, and product liability insurance coverages, as detailed in the Aunt Millie's Bakeries Security Agreement (Exhibit H).
Prospective franchisees should note that these insurance costs can be paid in weekly installments if purchased through an approved vendor, which would eliminate the need for an upfront payment. However, the FDD clearly states that the actual insurance costs may be higher or lower than the provided estimate. This variability could depend on factors such as the franchisee's location, driving record, and the specific insurance provider chosen.
It is important for potential Aunt Millies Bakeries franchisees to carefully review Exhibit H of the Franchise Disclosure Document to understand the specific insurance requirements. Additionally, they should obtain quotes from multiple insurance providers to determine the actual cost of coverage in their specific circumstances. Understanding these costs is crucial for accurate financial planning and ensuring the business is adequately protected from potential liabilities.