What is the estimated annual cost range for insurance for a Gokhale Method franchise?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
| CATEGORYOF INVESTMENT | AMOUNT | METHODOF PAYMENT | WHENDUE | TOWHOMPAID |
|---|---|---|---|---|
| InitialFranchiseFee | $4,000 | Cashorcheck | Priorto commencementof ImmersionWeek | Franchisor. Note1 |
| InitialTraining Expenses–Travel, foodandlodging | $740-3,500 | Cashorcredit card | Priortoorduring ImmersionWeek | Vendors. Note2 |
| RealEstateand | $0–1,000 | Variesby | Variesbylandlord | Landlord |
| SpaceRental | landlord | Note3 | ||
| Furnishingsand equipment | $2,486– $9,292 | Checkor creditcard | Priortoapprovalto teach | Franchisorand third-partyvendors. Note4 |
| Telephoneand | $100-$450 | Variesby | Variesbyvendor | Vendor |
| InternetConnections | vendor | Note5 | ||
| SecurityDeposits, utilitydeposits,other prepaidexpenses | $100-$300 | Variesby vendor | Variesbyvendor | |
| Continuing Education | $830 | Checkor creditcard | Priorto commencementof business | Franchisor Seenote6. |
| MarketingExpenses | $100–$600 | Checkor creditcard | Varies | Franchisoror vendors. Seenote7. |
| AdditionalFunds– | $0-$3,000 | Varies | Varies | Seenote8. |
| threemonths | ||||
| Insurance | $175–$450/ year | Variesby carrier | Priorto commencementof business | Vendors. Note9 |
| TOTAL: | $8,531– $23,422 |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 13–15)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, the estimated cost for insurance ranges from $175 to $450 per year. This cost covers a general liability policy, which franchisees must obtain to meet the requirements outlined in the Franchise Agreement.
Prospective franchisees should budget for this expense as part of their initial investment. The actual cost may vary depending on the insurance carrier and the specific coverage terms. It is important to secure an appropriate insurance policy before commencing business operations to ensure compliance with the franchise agreement and to protect against potential liabilities.
As noted in the FDD, these figures are only estimates, and a franchisee's actual costs may be higher depending on their particular circumstances. It is advisable to consult with a business advisor, accountant, or attorney to review these figures carefully before making any decision to purchase a franchise. Franchisees should also shop around for insurance to find the best rates and coverage options.