What is the estimated low and high cost for insurance for a Burneys Sweets More franchise?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF EXPENDITURE | AMOUNT | METHOD OF PAYMENT | WHEN DUE | TO WHOM PAYMENT IS MADE | |
|---|---|---|---|---|---|
| LOW | HIGH | ||||
| PRE-OPENING COSTS1 | |||||
| Initial Franchise Fee | $20,000 | $20,000 | Lump sum | Due on signing Franchise Agreement | Us |
| Inventory2 | $8,800 | $27,500 | Vendor terms | Within 0 - 30 days of order | Approved vendors |
| Lease3 | $22,000 | $82,500 | Landlord terms | Monthly, depending on lease agreement | Landlord |
| Leasehold Improvements and Fixtures4 | $22,000 | $300,000 | Lump sum or (possibly) amortized by landlord | Varies depending on your contract with supplier | Supplier or Landlord |
| Furnishings | $1,100 | $20,000 | As incurred | Varies depending on your contract with supplier | Approved suppliers |
| Signage | $880 | $8,800 | As incurred | Varies depending on your contract with supplier | Approved suppliers |
| TYPE OF EXPENDITURE | AMOUNT LOW | HIGH | METHOD OF PAYMENT | WHEN DUE | TO WHOM PAYMENT IS MADE |
| Equipment and Smallwares5 | $55,000 | $154,000 | As incurred | Varies depending on contract with supplier | Approved supplier |
| Point of Sale | $1,500 | $1,899 | As incurred | Monthly | Approved |
| System6 | supplier | ||||
| Deposits7 | $440 | $2,200 | Lump sum | Usually before opening | Landlord, utili- ties, phone co. |
| Insurance8 | $3,300 | $5,500 | As incurred | Varies depending on contract with supplier. | Approved supplier |
| Business Licenses | $28 | $330 | As incurred | Varies depending on jurisdiction | Local, state, federal government; approved vendors |
| Training living expenses | $1,650 | $4,400 | As incurred | Before opening | Air travel, hotels, meals, incidentals |
| Grand Opening Marketing9 | $550 | $2,750 | These expenditures commence on an as incurred basis as early as 60 days’ prior to the opening of your Shop and will continue through the first 30-60 days of operation | As incurred | Suppliers |
| Brand Fund Fee— 3 months | 0.5% of monthly Gross Sales | 1.5% of monthly Gross Sales | Paid monthly in lump sum | EFT | Us |
| Royalty | 3% of monthly Gross Sales | 5% of monthly Gross Sales | Paid monthly in lump sum | EFT | Us |
| TYPE OF EXPENDITURE | AMOUNT LOW | HIGH | METHOD OF PAYMENT | WHEN DUE | TO WHOM PAYMENT IS MADE |
| Local Advertising | 1% of monthly Gross Sales | 1% of monthly Gross Sales | As incurred; At least 1% of your Gross Sales must be spent on local advertising monthly; the value of products given away counts towards this requirement. | As incurred | Vendors |
| Additional Funds – 3 months (Working Capital) 10 | $22,000 | $55,000 | As incurred | As incurred | Vendors, suppliers, utilities |
| TOTAL | $159,248 | $684,879 |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 17–20)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, the estimated cost for insurance ranges from $3,300 to $5,500. This estimate is based on annual premiums and is paid as incurred, with the specific timing varying depending on the contract with the approved supplier.
For a prospective Burneys Sweets More franchisee, this means setting aside between $3,300 and $5,500 for the first year's insurance coverage. The actual cost will depend on factors such as the specific insurance policies obtained, the location of the shop, and the franchisee's risk profile. It is important to note that this is just an estimate, and the actual cost may vary.
Franchisees should obtain quotes from multiple approved insurance suppliers to ensure they are getting the best possible rate. Additionally, franchisees should carefully review the terms of their insurance policies to understand what is covered and what is not. It is also important to factor in potential increases in insurance premiums in future years when planning the financial operations of the Burneys Sweets More franchise.