Is the insurance fee refundable for an Aunt Millie's Bakeries franchise?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9 You must purchase the comprehensive general liability insurance, automobile liability insurance, and product liability insurance coverages set forth in the Aunt Millie's Bakeries Security Agreement attached as Exhibit H to this Franchise Disclosure Document.
The figure shown in the table reflects the estimated quarterly premium for insurance.
If purchased through an approved vendor, this cost can, at your option, be paid weekly and thereby would represent no upfront cost.
Your actual insurance costs may be more or less than this amount.
This fee is not refundable.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 16–17)
What This Means (2025 FDD)
According to Aunt Millie's Bakeries' 2025 Franchise Disclosure Document, the initial insurance coverage fee is not refundable. The FDD states that franchisees must purchase comprehensive general liability, automobile liability, and product liability insurance coverages as outlined in the Aunt Millie's Bakeries Security Agreement. The estimated quarterly premium for this insurance, ranging from $520 to $715, is shown in the table of estimated initial investments.
While the insurance can be paid weekly through an approved vendor, potentially eliminating an upfront cost, the FDD explicitly states that this fee is not refundable. This means that once the insurance premium is paid, whether in full or in weekly installments, the franchisee cannot recover the cost, even if the franchise agreement is terminated or the franchisee decides to discontinue operations.
This non-refundable aspect of the insurance fee is an important consideration for prospective Aunt Millie's Bakeries franchisees. It highlights the need to carefully evaluate the insurance requirements and costs before committing to the franchise. Franchisees should also inquire about the terms and conditions of the insurance policy, including coverage details and any potential exclusions, to ensure they are adequately protected and understand the financial implications of this non-refundable fee.