What is the estimated low and high range for insurance costs for a Crepe De Licious franchise?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Paid | |
|---|---|---|---|---|---|
| Low | High | ||||
| Initial Franchise | $35,000 | $35,000 | Lump sum | Upon signing of | Us |
| Fee(1) | Franchise Agreement | ||||
| Territory | $10,000 | $10,000* | Lump Sum | Due before Franchise | Us |
| Reservation Fee(1) | Agreement is signed | ||||
| Design Fee(2) | $5,000 | $10,000 | As incurred | Upon ordering designs | Us |
| Mechanical, | $5,000 | $25,000 | As incurred | As agreed | Third Parties |
| Electrical, | |||||
| Plumbing, and | |||||
| Architectural | |||||
| Fees(3) | |||||
| Real Estate Agent | $10,000 | $15,000 | As incurred | As agreed | Third Parties |
| Fees(4) | |||||
| Rent, Security Deposit, Utility Deposit(5) | $1,500 | $5,000 | As incurred | As agreed | Landlord, Utility Companies |
| Additional | $650 | $15,000 | As incurred | As agreed | Landlord |
| Storage(5) | |||||
| Leasehold Improvements(6) | $95,000 | $200,000 | As incurred | As agreed | Landlord, Contractors, Other Suppliers |
| Furniture, Fixtures, | $65,000 | $150,000 | As incurred | As agreed | Approved |
| and Equipment(7) | Suppliers | ||||
| Initial Inventory | $15,000 | $25,000 | As incurred | As agreed | Approved |
| and Supplies(8) | Suppliers | ||||
| Insurance(9) | $5,000 | $7,000 | As incurred | As agreed | Insurance Providers / Approved Suppliers |
| Business Licenses | $5,000 | $20,000 | As incurred | As agreed | Third Parties |
| and Permits(10) | |||||
| Professional | $5,000 | $10,000 | As incurred | As agreed | Attorney, |
| Fees(11) | Accountant | ||||
| Signage(12) | $5,000 | $25,000 | As incurred | As agreed | Approved Suppliers |
| Office Equipment | $3,500 | $5,000 | As incurred | As agreed | Us, Approved |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT YOUR ESTIMATED INITIAL INVESTMENT (FDD pages 18–25)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, the estimated cost for insurance ranges from $5,000 to $7,000. This is an expense that the franchisee must cover to obtain and maintain the required insurance coverage. Crepe De Licious retains the right to mandate that franchisees secure insurance from their approved suppliers.
This cost is typically incurred as agreed upon with insurance providers or approved suppliers. However, the FDD notes that if a franchisee has had prior issues or claims from previous business operations unrelated to Crepe De Licious, their insurance rates may be significantly higher than the estimated range.
Prospective franchisees should factor this potential variability into their financial planning, especially if they have a history of insurance claims. It would be prudent to consult with insurance providers to get a more accurate estimate based on their specific circumstances and to inquire about any potential requirements or approved suppliers mandated by Crepe De Licious.