For Aw franchisees, what is the estimate for insurance based on?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
s, uniforms and other supplies.
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- Insurance. You must purchase and maintain insurance coverage in minimum amounts we require. The required insurance is described in Item 8 of this Disclosure Document and in the Franchise Agreement. The premiums that franchisees will be charged will vary from market to market. The low estimate is for a minimum initial payment and the high estimate is for payment in full of the annual premium.
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- Miscellaneous Pre-Opening Expenses.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 16–19)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, franchisees must secure and maintain insurance coverage that meets Aw's minimum requirements, as detailed in Item 8 of the FDD and the Franchise Agreement. The estimated cost for insurance ranges from $900 to $16,000, with the actual premiums varying depending on the market. The lower end of the estimate covers a minimum initial payment, while the higher end accounts for full payment of the annual premium. This cost is payable as incurred and arranged with the insurance company.
Prospective Aw franchisees should note that the cost of insurance can significantly vary based on location and coverage levels. It is crucial to obtain accurate insurance quotes specific to their operating area to better estimate this expense. Item 7 includes a table that lists insurance as part of the estimated initial investment.
It is important for potential Aw franchisees to carefully review Item 8 of the FDD and the Franchise Agreement to understand the specific insurance requirements. They should also consult with insurance professionals to determine the appropriate coverage and associated costs for their Papa Ray's Pizza Restaurant location. Understanding these costs is essential for accurate financial planning and ensuring compliance with Aw's franchise terms.