To whom is insurance paid 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 | $1,8 |
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, franchisees will make insurance payments to an approved supplier. The estimated cost for insurance ranges from $3,300 to $5,500, representing the annual premium. These payments are made as incurred, with the specific timing varying depending on the contract established with the supplier.
Insurance is a standard operating cost for any business, and the FDD's inclusion of this expense highlights its importance. Franchisees should confirm which types of insurance are covered under this line item (e.g., general liability, property, workers' compensation) and ensure they meet all of Burneys Sweets More's requirements, as well as any local or state mandates.
Prospective franchisees should carefully review the list of approved suppliers and compare insurance quotes to ensure they are receiving competitive rates and adequate coverage. It is also prudent to inquire about the supplier's reputation and claims process to avoid potential issues in the future. Understanding the terms of the insurance contract is crucial, as it dictates the scope of coverage and the responsibilities of both the franchisee and the insurance provider.