What does the insurance estimate for a Brueggers Bagels franchise cover?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
pay us the fee indicated.
ITEM 7 ESTIMATED INITIAL INVESTMENT
| Type of Expenditure (Note 1) | Amount | Method of Payment | When Due | To Whom Payment is to be Made | |
|---|---|---|---|---|---|
| Initial Franchise Fee (Note 2) | $35,000 | Lump sum | Upon signing the Franchise Agreement | Us | |
| Real Property | $25,000 to | As Arranged | As Arranged | Lessor | |
| (Note 3) | $56,250 | ||||
| Design, Permitting Fees (Note 4) | $36,000 to $79,000 | As Arranged | As Incurred | Contractors and Government Agencies | |
| Building and Leasehold Improvements (Note 5) | $278,000 to $508,000 | As Arranged | As Incurred | Contractors and Vendors | |
| Signage (Note 6) | $21,000 to $103,000 | As Arranged | As Incurred | Vendors | |
| Furniture, Fixtures & Equipment (Note 7) | $222,800 to $272,900 | As Arranged | As Incurred | Vendors | |
| Site Work (Note 8) | $0 to $10,000 | As Arranged | As Incurred | Vendors | |
| Technology Suite | $24,000 to | As Arranged | As Incurred | Vendors | |
| (Note 9) | $42,000 | ||||
| Start-up Inventory & Supplies (Note 10) | $10,000 to $14,000 | As Arranged | As Incurred | Distributors, us, or our affiliates | |
| Grand Opening Advertising (Note 11) | $10,000 | As Arranged | As Arranged | Vendors, Printers, Media | |
| Insurance (Note 12) | $3,000 to $5,000 | As Arranged | As Arranged | Insurance Company | |
| Utility Deposits & Licenses (Note 13) | $3,000 to $5,000 | Lump Sum | As Incurred | Utility Companies, Governmental Agencies | |
| Legal and Accounting (Note 14) | $5,000 to $30,000 | As Arranged | As Incurred | Attorney, Accountant | |
| Training (Note 15) | $6,000 to $12,000 | As Arranged | As Incurred | Employees, Hotels, Airlines, Vendors, etc. | |
| YOUR ESTIMATED INITIAL INVESTMENT | |||||
| Franchised Bakery | |||||
| Type of Expenditure (Note 1) | Amount | Method of Payment | When Due | To Whom Payment is to be Made | |
| Additional Funds – 3 months (Note 16) | $15,000 to $45,000 | As Arranged | As Incurred | Vendors, Suppliers, Employees, Utilities, Landlord, etc. | |
| Total | $693,800 to $1,227,150 | # Explanatory Notes – Franchised Bakery: |
- (1) The estimated costs for a Franchised Bakery are based on open shop bidding practices with no premium built in for the cost of union labor. The estimated costs are for a new Bakery. Except as indicated, these fees are not refundable. We do not finance your investment.
- (2) These amounts are discussed in detail in Item 5. The initial franchise fee must be paid when the Franchise Agreement is signed.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 18–25)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, the insurance estimate covers the first year's premiums for insurance that meets the franchisor's current requirements. The cost for this insurance ranges from $3,000 to $5,000. However, the FDD indicates that insurance costs can fluctuate based on several factors. These factors include the size and location of the Brueggers Bagels bakery, as well as the franchisee's claims history.
Prospective franchisees should note that the initial insurance estimate is only for the first year. Subsequent years' premiums may vary based on the factors mentioned above and changes in the insurance market. It is important for franchisees to maintain adequate insurance coverage as required by Brueggers Bagels to protect their investment and comply with the Franchise Agreement.
Item 6 and Item 8 of the FDD provide further details regarding a franchisee's obligations with respect to insurance. Reviewing these items will give prospective franchisees a more comprehensive understanding of the insurance requirements and their responsibilities. This is a common practice in franchising, as franchisors typically require franchisees to maintain certain levels of insurance coverage to protect the brand and the franchise system.