What is the estimated range for insurance costs for a Chatime franchise?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
| Estimated Amount | Method of | When | Payable to | |
|---|---|---|---|---|
| Type of Expenditure | ||||
| Range | Payment | Payable | Whom | |
| Insurance(10) | $3,000 to $6,000 | As arranged | As incurred | Third party |
- (10) Insurance.
We currently require that you maintain the following insurance coverages: A) general liability coverage with minimums of $1 million per occurrence, $2 million general and products/completed operations aggregate, $1 million personal/advertising injury, $50,000 rented premises damage, and $5,000 medical expenses; B) franchisee commercial auto insurance with a $1 million combined single limit; C) workers compensation insurance with coverage limits of $1 million for bodily injury by disease per accident, $1 million policy limit, and $1 million per employee, regardless of state laws and cannot exclude owner-operators; D) property/business interruption coverage business personal property, tenant improvements, equipment, business interruption, and franchisor royalties, for a minimum of 12 months' actual loss sustained; E) cyber liability insurance with minimum coverage limits of $250,000 per occurrence and $250,000 aggregate; F) employment practices liability insurance with minimum coverage limits of $500,000 per occurrence and $500,000 aggregate, which includes third party liability and wage & hour coverage of at least $25,000, with a maximum deductible that does not exceed $25,000; G) crime insurance with a minimum coverage of $100,000 for each claim.
We recommend that you maintain build-out insurance coverage.
You must also maintain workers' compensation insurance coverage for your employees during training.
Source: Item 7 — Estimated Initial Investment (FDD pages 17–22)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the estimated cost for insurance ranges from $3,000 to $6,000. This cost is payable to a third-party insurance provider and is typically arranged as incurred.
Chatime requires franchisees to maintain several insurance coverages, including general liability coverage with minimums of $1 million per occurrence and $2 million general and products/completed operations aggregate. Franchisees also need commercial auto insurance with a $1 million combined single limit, workers' compensation insurance with coverage limits of $1 million for bodily injury by disease per accident, policy limit, and per employee.
Additional required coverages include property/business interruption coverage for a minimum of 12 months' actual loss sustained, cyber liability insurance with minimum coverage limits of $250,000 per occurrence and aggregate, employment practices liability insurance with minimum coverage limits of $500,000 per occurrence and aggregate, and crime insurance with a minimum coverage of $100,000 for each claim. Franchisees are also advised to maintain build-out insurance coverage and workers' compensation insurance during training.