What is the estimated low cost for insurance for a Carvel ice cream truck?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
y 21 | $500 | $1,600 | As incurred | Before opening | Vendors | | Additional Funds – 3 Months 22 | $500 | $6,500 | As incurred | As incurred | Us, employees, vendors, etc. | | Total Initial Investment 23, 24 | $38,800 | $99,800 | | | |
YOUR ESTIMATED INITIAL INVESTMENT: ICE CREAM TRUCK
| Amount of | Expenditure | Method of | When | To Whom | |
|---|---|---|---|---|---|
| Type of Expenditure | Low | High | Payment | Payments Are Due | Payment Will Be Made |
| Initial Franchise Fee 1 | $5,500 | $5,500 | Lump sum | At signing of Franchise Agreement | Us |
| Truck Costs 25 | $69,000 | $185,700 | As incurred | Before opening | Contractors |
| Permitting 3 | $550 | $5,500 | As incurred | Before opening | Government agencies |
| Equipment Package 4 | $24,100 | $47,750 | Lump sum | Before opening | Vendors |
| Type of Expenditure | Amount of Expenditure | Method of Payment | When | To Whom Payment Will Be Made | |
| --- | --- | --- | --- | --- | --- |
| Low | Payments Are Due | ||||
| Menu Board, Graphics and | $550 | $1,600 | As incurred | Before opening | Vendors |
| Interior Signage7 | |||||
| Computer System9 | $10,500 | $20,000 | As incurred | Before opening | Vendors |
| Smallwares10 | $550 | $1,100 | As incurred | Before opening | Vendors |
| Architect/Engineer12 | $550 | $5,300 | As incurred | Before opening | Architect |
| Grand Opening Marketing14 | $3,000 | $7,500 | As incurred | Before opening | Vendors or Us |
| Legal and Accounting | $2,500 | $5,000 | As incurred | Before opening | Lawyers and |
| Fees15 | accountants | ||||
| Insurance16 | $1,125 | $6,300 | As incurred | Before opening | Insurance companies |
| Management Training | $0 | $3,000 | As incurred | Before opening | Us |
| Program Fee19 | |||||
| Travel and Living Expenses during Training19 | $4,100 | $6,300 | As incurred | Before open |
Source: Item 7 — Estimated Initial Investment (FDD pages 42–52)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, the estimated low cost for insurance for an ice cream truck is $1,125 for the first year of operation. This figure is based on Carvel's minimum insurance requirements. However, the actual cost can vary significantly, ranging up to $6,300, depending on factors such as the truck's location, the claims experience of commercial businesses in the area, and the franchisee's prior insurance claim history.
Carvel may also obtain a master insurance policy for the system and require franchisees to pay a proportionate share of the coverage. The specific types and minimum amounts of insurance coverage required are detailed in Section 13.2 of the Franchise Agreement and are subject to change. This insurance must include a comprehensive business insurance program, including property, commercial general liability, automobile liability, business property, umbrella, workers' compensation, employment practices liability, cyber liability, and (if you serve alcohol) dram shop liability insurance.
Prospective Carvel franchisees should consider these potential variations and the possibility of increased costs in the future if Carvel requires higher policy limits. It is important to obtain detailed insurance quotes specific to the planned operating location and individual circumstances to accurately assess the likely insurance expenses. Understanding these factors will help in budgeting and financial planning for the franchise.