What is the minimum flood insurance requirement for a Creative World School franchise?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF INSURANCE | MINIMUM REQUIREMENT |
|---|---|
| Property Insurance (Acord 28 - 2016 ) | $2,000,000 or replacement value |
| Flood Insurance at FEMA maximum amount + additional as | $2,000,000 or Actual Cash |
| available | Valuation |
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 25–27)
What This Means (2025 FDD)
According to the 2025 Creative World School Franchise Disclosure Document, franchisees are required to maintain flood insurance. The minimum requirement is the FEMA maximum amount, plus additional coverage, up to either $2,000,000 or the actual cash valuation of the property.
This requirement means that a prospective Creative World School franchisee needs to secure flood insurance that meets or exceeds the FEMA maximum. Depending on the location of the school, the franchisee may need to obtain additional flood insurance to reach the $2,000,000 threshold or the actual cash value of the property, whichever is lower.
The cost of flood insurance can vary significantly depending on factors such as the location of the property, its elevation, and the coverage amount. Franchisees should consult with insurance professionals to determine the appropriate level of coverage and to obtain quotes. Failing to maintain adequate flood insurance could expose the franchisee to significant financial risk in the event of a flood.
It is important for prospective franchisees to factor in the cost of flood insurance when evaluating the overall financial investment required to open and operate a Creative World School franchise. They should also consider the potential impact of flood risk on their business operations and take steps to mitigate that risk.