Are the insurance costs for a Devon Creek franchise expected to vary by location?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
13Before you open for business; you must purchase and maintain at your sole cost and expense the insurance coverage that we specify. Each policy must name us, and our respective officers, directors, partners, agents, and employees as additional insured parties, contain a waiver of the insurance company's rights of subrogation against us, and be Primary Non-Contributory. We estimate that you will have to pay your insurance carrier or agent the full annual premium in advance. Insurance costs and requirements may vary widely in different localities. The estimate is
for 1 year of liability insurance coverage. We reserve the right to require additional types of insurance and coverage as provided in the Franchise Agreement.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT – START UP FRANCHISEE (FDD pages 16–21)
What This Means (2024 FDD)
According to Devon Creek's 2024 Franchise Disclosure Document, insurance costs for franchisees are expected to vary by location. The FDD indicates that insurance costs and requirements may differ significantly depending on the specific locality. Devon Creek estimates that franchisees will need to pay their insurance carrier the full annual premium in advance.
The estimated initial investment table shows that insurance costs can range from $2,500 to $7,500 for a start-up franchisee. For a conversion franchisee, the range is much wider, from $100 to $10,000. This difference likely reflects the varying insurance needs and existing coverage that conversion franchisees might have compared to new start-ups.
Given the potential for wide variation, it is crucial for prospective Devon Creek franchisees to obtain detailed insurance quotes specific to their location. Franchisees should also clarify with Devon Creek what specific types and levels of coverage are mandated to ensure full compliance and adequate protection for their business.