What is the estimated range of costs for insurance for a Big Apple Bagels Satellite Store?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Estimated Amount or Estimated High-Low Range | Method of Payment | When Due | To Whom Paid |
|---|---|---|---|---|
| Initial Franchise Fee(1) | $15,000 | Lump Sum | When you sign the Franchise Agreement | BAB |
| Store Opening Marketing | $3,000 | Lump Sum | Upon signing | BAB (BAGELS |
| Fee(2) | Franchise Agreement | Marketing Fund) | ||
| Professional Fees(3) | $4,000-$8,000 | As agreed | As incurred | Professionals |
| First Month's Rent and | $4,000-$8,000 | As agreed | As agreed in lease | Lessor |
| Security Deposit(4) | in lease | |||
| Insurance(5) | $4,000-$8,000 | Lump Sum | As incurred | Insurance Company |
| Leasehold Improvements(6) | $130,000 - $217,000 | As agreed | As incurred | Suppliers |
| Exterior and Interior | $5,000 - $10,000 | As agreed | As incurred | Designated |
| Signage and Display (7) | Supplier | |||
| Furniture, Fixtures, | $124,000-$190,000 | As agreed | As incurred | Approved |
| Equipment, (8) | Suppliers | |||
| Training(9) | $0 - $4,000 | As incurred | Before Opening | Hotels; Transportation Lines; Restaurants |
| Prepaid Expenses, | $500 - $1,500 | Lump Sum | As incurred | Third Parties |
| Deposits(10) | ||||
| Opening Inventory, | $7,000-$14,000 | As agreed | As incurred | Approved |
| Supplies(11) | Suppliers | |||
| Vehicle(12) | $2,000 - $20,000 | As agreed | As incurred | Third Parties |
| Additional Funds - 3 | $8,000-$15,000 | Varies | As incurred | Third Parties |
| months(13) | ||||
| TOTALS | $306,500-$513,500 |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 26–34)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, the estimated cost for a one-year insurance premium for a Satellite Store ranges from $4,000 to $8,000. This insurance coverage includes Workers Compensation, Employers Liability, Comprehensive General Liability, Products Liability, Employment Practices Liability, Cyber Liability, Property Insurance, Business Interruption, and an Umbrella Policy.
The cost of insurance can fluctuate based on the types and limits of coverage a franchisee chooses and other risk factors. It is important to note that this is just an estimate, and actual costs may vary.
Prospective franchisees should carefully consider these insurance requirements and obtain quotes from multiple insurance providers to ensure they have adequate coverage while managing their initial investment costs. Understanding the specific types of insurance required and the factors influencing premiums will help in making informed decisions about protecting their Big Apple Bagels business.