What is the estimated low and high cost for insurance for an Extreme Art Studio?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Expenditure (1) | Amount | Method of Payment | When Due | To Whom Payment is to be Paid(1) | |
|---|---|---|---|---|---|
| Low | High | ||||
| Insurance(4) | $1,000 | $2,500 | As Incurred | As Incurred | Insurance Providers |
You must obtain and maintain, at your own expense, the insurance coverage we require, and satisfy other insurance-related obligations.
If you have had prior issues or claims from previous operations unrelated to the operation of an Extreme Art Studio Business, your rates may be significantly higher than those estimated above.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 18–23)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, the estimated cost for insurance ranges from $1,000 to $2,500. This is an upfront cost that the franchisee will need to pay to insurance providers as incurred.
Extreme Art Studio requires franchisees to obtain and maintain insurance coverage at their own expense. The specific types and amounts of coverage required are not detailed in this section of the FDD, but it is important for prospective franchisees to understand that these costs are in addition to other initial investment expenses.
It's important to note that the FDD states that if a franchisee has had prior insurance claims from previous business operations unrelated to Extreme Art Studio, their insurance rates may be significantly higher than the estimated range. This highlights the importance of maintaining a good insurance record to keep costs within the estimated range.