What is the estimated range for insurance costs per year 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 Gokhale Method's 2024 Franchise Disclosure Document, the estimated cost for insurance ranges from $175 to $450 per year. This cost covers a general liability policy that conforms to the requirements laid out in the Franchise Agreement. The franchisee must secure this insurance prior to commencing business operations.
The FDD indicates that the cost of insurance can vary depending on the carrier. This suggests that franchisees have the flexibility to shop around for the best rates and coverage options that meet Gokhale Method's requirements. Prospective franchisees should factor this annual expense into their initial investment and ongoing operational costs.
It is important to note that the $175-$450 range is only an estimate, and the actual cost may be higher depending on the franchisee's specific circumstances. The FDD recommends that prospective franchisees carefully review these figures with a business advisor, accountant, or attorney before making any decisions. This due diligence will help ensure that franchisees are adequately prepared for all potential expenses associated with starting and running a Gokhale Method franchise.