When are insurance costs due for a Cinnaholic franchise?
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, insurance costs, estimated between $1,000 and $2,000, are due as incurred. This means a new Cinnaholic franchisee will need to pay for insurance coverage when they obtain it.
The FDD notes that this figure is an estimate of the annual cost of maintaining the required insurance as per the Franchise Agreement. This implies that maintaining continuous insurance coverage is a requirement for Cinnaholic franchisees, and payments will be necessary to keep the policy active.
Unlike some other initial investments with fixed payment schedules (like the initial franchise fee), insurance costs are variable and depend on the specific policy a franchisee chooses and when they obtain that policy. Franchisees should factor these ongoing insurance expenses into their operating budget.