What are the insurance requirements for a Creative World School franchise based on the System Standards?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
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ITEM 7 ESTIMATED INITIAL INVESTMENT
Your Estimated Initial Investment
| Type of Expenditure (1) | Low Amount | High Amount | Method Of Payment | When Due | To Whom Payment is to be Made |
|---|---|---|---|---|---|
| Initial Franchise Fee (1)(2) | $75,000 | $80,000 | Lump Sum | Signing Franchise Agreement | Us |
| Building / L |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 18–21)
What This Means (2025 FDD)
According to the 2025 Creative World School Franchise Disclosure Document, franchisees must obtain insurance to meet the minimum requirements established by the System Standards. The estimated initial investment for insurance ranges from $9,000 to $40,000, payable as a lump sum to third-party providers, and is due as incurred.
This insurance cost is part of the total estimated initial investment, which ranges from $5,767,050 to $10,143,500. The wide range in the insurance estimate likely reflects differences in coverage levels, policy terms, and the specific insurance providers used. Franchisees should carefully review the System Standards to understand the specific types and amounts of insurance required to operate a Creative World School franchise.
Prospective franchisees should clarify with Creative World School what specific insurance policies are mandated, the minimum coverage amounts for each policy, and any approved insurance providers. Understanding these requirements is crucial for budgeting and ensuring compliance with the franchise agreement. It is also important to consider factors that may influence insurance costs, such as the location of the school, the number of students enrolled, and any specific risks associated with the facility.