For a Cream franchise, how often are insurance premiums payable?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Insurance.
This estimate includes the cost of the quarterly premiums for the insurance you must obtain and maintain for your Shop, as described in Item 8.
Insurance premiums may be payable monthly, quarterly, semi-annually, or annually based on the insurance company's practices and your creditworthiness.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 17–22)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the frequency of insurance premium payments can vary. Cream franchisees may be required to make insurance payments monthly, quarterly, semi-annually, or annually. The specific payment schedule will depend on the practices of the insurance company providing the coverage and the franchisee's creditworthiness.
Item 7 of the FDD includes an estimated initial investment for insurance, specifically covering the cost of quarterly premiums for the required insurance. This suggests that while other payment options exist, the initial investment estimation is based on a quarterly payment schedule. The estimated cost for this initial three-month period is between $500 and $750, payable to unaffiliated third parties such as insurance companies.
Prospective Cream franchisees should inquire with insurance providers to understand the available payment options and how their creditworthiness might impact these options. This will allow for accurate budgeting and financial planning during the initial phase of establishing the franchise.