What does the estimated annual insurance cost for a Cinnaholic franchise cover?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|
| Insurance (See Note 10) | $1,000 to | As | As Incurred | Insurance |
| $2,000 | Arranged | Providers |
- Note 10: This figure is an estimate of the annual cost of maintaining the insurance required by the Franchise Agreement.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 18–21)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the estimated initial investment includes an annual insurance cost ranging from $1,000 to $2,000. Note 10 in Item 7 of the FDD states that this figure is an estimate of the annual cost of maintaining the insurance required by the Franchise Agreement.
This means that as a Cinnaholic franchisee, you should budget between $1,000 and $2,000 annually for insurance expenses. The actual cost may vary depending on factors such as location, coverage levels, and the insurance provider you choose. It is important to note that this cost is an estimate, and you may incur additional insurance-related expenses.
Prospective franchisees should carefully review the Franchise Agreement to understand the specific insurance requirements mandated by Cinnaholic. This will help in obtaining accurate insurance quotes and ensuring compliance with the franchise terms. It is advisable to consult with an insurance professional to determine the appropriate coverage for your Cinnaholic bakery, considering factors such as liability, property, and business interruption insurance.