What is the minimum required amount for Flood Insurance for a Creative World School franchise?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF INSURANCE | MINIMUM REQUIREMENT |
|---|---|
| Flood Insurance at FEMA maximum amount + additional as | $2,000,000 or Actual Cash |
| available | Valuation |
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 21–25)
What This Means (2025 FDD)
According to Creative World School's 2025 Franchise Disclosure Document, franchisees must maintain flood insurance. The minimum requirement is the FEMA maximum amount plus additional coverage, set at either $2,000,000 or the Actual Cash Valuation of the property, whichever is higher or more applicable.
This requirement ensures that the Creative World School location is adequately protected against potential flood damage, safeguarding the franchisee's investment and the continuity of business operations. Franchisees should consult with their insurance provider to determine the appropriate level of coverage based on their specific location and risk assessment.
It is important for prospective franchisees to factor in the cost of flood insurance, along with other insurance requirements, when evaluating the overall financial investment required to establish and operate a Creative World School franchise. Understanding these insurance obligations is crucial for effective financial planning and risk management.