What is the estimated range for insurance deposits (three months) for a Beard Papas franchise?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 12: Insurance Deposits – Three Months – You are required to maintain certain insurance coverage. Your actual payments for insurance and the timing of those payments will be determined based on your agreement with your insurance company and agent. This estimate is for the cost of an initial deposit in order to obtain the minimum required insurance and we estimate this deposit to be equal to the amount of three months of monthly insurance premium payments. We recommend that you consult with your insurance agent before signing a Franchise Agreement.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 17–26)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, franchisees are required to maintain certain insurance coverage. The FDD estimates the initial deposit for this insurance to be equal to three months of monthly insurance premium payments. While the document mentions this deposit, it does not provide a specific dollar amount or range for this insurance deposit.
The actual payments for insurance and the timing of those payments will be determined based on the agreement between the franchisee and their insurance company and agent. Beard Papas recommends that prospective franchisees consult with their insurance agent before signing a Franchise Agreement to get a clearer understanding of these costs.
Because the FDD does not specify an estimated range for insurance deposits, it is important for potential franchisees to speak with existing franchisees and their own insurance agent to get an accurate estimate of these costs. Understanding these costs is crucial for budgeting and financial planning when starting a Beard Papas franchise.