What is the estimated range of expenses for insurance for a Hyper Kidz franchise?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
proved Suppliers |
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Made |
|---|---|---|---|---|
| Computer System | $7,500 to $20,000 | As arranged | As arranged | Approved |
| (9) | Suppliers | |||
| Permits and | $2,000 to $6,000 | As arranged | As arranged | Government |
| Licenses (10) | Agencies | |||
| Building Permits/ | $5,000 to $20,000 | As arranged | As arranged | Government |
| Impact Fees | Agencies | |||
| Professional Fees (11) | $5,000 to $20,000 | As arranged | As arranged | Attorney, Designated Accountant |
| Insurance (12) | $3,800 to $16,000 | As arranged | As arranged | Insurance Companies |
| Training Expenses | $1,000 to $5,000 | As arranged | As incurred | Airlines, Hotels, |
| (13) | Restaurants | |||
| Grand Opening (14) Advertising | $5,000 to $14,000 | As arranged | As arranged | Suppliers |
| Additional Funds – | $40,000 to $70,000 | As arranged | As incurred | Various |
| 3 Months (15) |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 15–19)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, the estimated cost for insurance ranges from $3,800 to $16,000. This estimate covers up to 12 months of insurance premiums. The franchisee is responsible for securing and maintaining the insurance coverage that Hyper Kidz specifies throughout the term of the Franchise Agreement.
This cost is part of the initial investment required to start a Hyper Kidz franchise. The franchisee will need to arrange for payment with insurance companies as the premiums become due. It's important for prospective franchisees to factor this expense into their initial budget and ensure they have sufficient capital to cover these costs.
Insurance costs can vary based on factors such as the location of the Hyper Kidz Business, the specific coverage required, and the franchisee's insurance history. It is advisable for potential franchisees to consult with insurance professionals to obtain accurate quotes and understand the specific insurance requirements for their business.