When is the Insurance fee payable to Creative Colors?
Creative_Colors Franchise · 2025 FDDAnswer from 2025 FDD Document
cture_0.jpeg)
| (1) Type of Fee | (2) Amount | (3) Due Date | (4) Remarks |
|---|---|---|---|
| Mobile unit Lease Payments1/ | $700 - $800 per month, depending on amount of down payment. | Monthly | If you elect to lease your Mobile unit through us and our Supplier, you make the monthly payments to us. |
Source: Item 6 — OTHER FEES (FDD pages 10–15)
What This Means (2025 FDD)
According to Creative Colors's 2025 Franchise Disclosure Document, the insurance fee is payable "On Demand." However, this fee is only paid to Creative Colors International, Inc. or the insurance carrier if the franchisee fails to pay their insurance premium, and Creative Colors has to cover the premium on their behalf.
This means that as a Creative Colors franchisee, you are responsible for maintaining your own insurance coverage. If you fail to do so, Creative Colors has the right to step in, pay the premium, and then demand reimbursement from you. The amount due would be Creative Colors's costs for covering your premium.
It is important for a prospective Creative Colors franchisee to maintain up-to-date insurance payments to avoid incurring this on-demand fee. This protects both the franchisee and Creative Colors from potential liabilities and ensures continuous coverage for the business.