What is the estimated low and high cost for insurance for a Buff City Soap franchise?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
| Nature of Expenditure | Low | High Estimate | Payment | When Due | Payment |
|---|---|---|---|---|---|
| Estimate | Method | To | |||
| Initial Franchise Fee (See Note | At signing of | ||||
| 2) | Franchise | ||||
| $50,000 | $50,000 | Lump sum | Agreement | Franchisor | |
| Construction and Leasehold | |||||
| Improvements (See Note 4) | As | Before | |||
| $42,860 | $310,000 | incurred | opening | Suppliers | |
| Rental Expenses (See Note 4) | As | Before | |||
| $40,000 | $200,000 | incurred | opening | Suppliers | |
| Interior and Exterior Signs | |||||
| (See Note 4) | As | Before | |||
| $18,000 | $30,000 | incurred | opening | Suppliers | |
| Furniture and Fixtures | |||||
| (See | |||||
| Note 5) | As | Before | |||
| $62,500 | $150,000 | incurred | opening | Suppliers | |
| Equipment (See Note 5) | As | Before | |||
| $6,844 | $50,000 | incurred | opening | Suppliers | |
| Smallwares | As | Before | |||
| (See Note 6) | |||||
| $1,800 | $3,500 | incurred | opening | Affiliate | |
| Architects and Engineering | As | Before | |||
| $5,750 | $20,000 | incurred | opening | Suppliers | |
| Other Professional Fees | |||||
| (Accountant/Lawyers/Business | |||||
| Advisors) | As | Before | |||
| $1,000 | $20,000 | incurred | opening | Suppliers | |
| Opening Inventory | |||||
| (See Note | |||||
| 6) | As | Before | |||
| $20,000 | $120,000 | incurred | opening | Affiliate | |
| Opening Supplies | |||||
| (See Note 6) | As | Before | |||
| $9,000 | $15,000 | incurred | opening | Affiliate | |
| Computers, software, | |||||
| Telecommunication, | |||||
| networking, security (See Note | Before | Suppliers | |||
| 7) | As | opening or as | or by | ||
| $5,775 | $20,000 | incurred | incurred | Franchisor | |
| Training and Pre-Opening | |||||
| Expenses (See Note 8) | As | Before | |||
| $21,274 | $33,591 | incurred | opening | Suppliers | |
| Pre-Opening Labor | As | Before | |||
| $18,992 | $26,194 | incurred | opening | Suppliers | |
| YOUR ESTIMATED INITIAL INVESTMENT | |||||
| SINGLE MAKERY | |||||
| (See Note 1) | |||||
| Nature o |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 24–28)
What This Means (2025 FDD)
According to Buff City Soap's 2025 Franchise Disclosure Document, the estimated cost for insurance ranges from $8,132 to $9,139. This cost represents an annual premium, which is paid to suppliers before opening the store.
Buff City Soap notes that the actual insurance costs may fluctuate due to changes in insurance market conditions and the franchisee's loss history. This means that franchisees could potentially face higher insurance premiums if the market changes unfavorably or if they have a history of insurance claims.
It is important to note that Buff City Soap specifies the minimum insurance coverage requirements in the disclosure document and may modify these requirements from time to time in the manuals. Therefore, franchisees must stay informed about the current insurance requirements to ensure they maintain adequate coverage and comply with the franchisor's standards. This ongoing cost is a necessary part of operating a Buff City Soap franchise and should be factored into the overall financial planning.