What is the estimated range for insurance costs before beginning operations for a Monicals Pizza franchise?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|
| Franchise Fee1 | 25,000 45,000 | Cashier's Check | At Signing of Franchise Agreement | Us |
| Real Estate/Rent2 | 2,000 14,400 | As Arranged | Before Beginning Operations | Lessor |
| Utility Deposits3 | 500 4,000 | As Arranged | Before Beginning Operations | Utilities |
| Leasehold | 25,000 | As Arranged | Before Beginning | Suppliers |
| Improvements4 | 400,000 | Operations | ||
| Furniture, Fixtures & | 275,000 | As Arranged | Before Beginning | Suppliers |
| Equipment5 | 365,000 | Operations | ||
| Initial Inventory6 | 20,000 | As Arranged | Before Beginning | Approved Suppliers, |
| 25,000 | Operations | Suppliers | ||
| Office Equipment & | 5,000 | As Arranged | Before Beginning | Suppliers |
| Supplies7 | 6,000 | Operations | ||
| Insurance8 | 7,000 15,000 | As Arranged | Before Beginning Operations | Suppliers |
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment Is To Be Made |
| ---------------------------------- | ---------------------------- | ---------------------- | -------------------------------- | -------------------------------------------- |
| Signage9 | 15,000 30,000 | As Arranged | Before Beginning Operations | Suppliers |
| Training10 | 5,000 10,000 | As Arranged | Before Beginning Operations | Suppliers |
| Grand Opening11 | 5,000 10,000 | As Arranged | First 3 Months of Operation | Suppliers |
| Dues & Subscriptions12 | 50 2000 | As Arranged | Before Beginning Operations | Suppliers |
| Licenses & Permits13 | 1,000 3,000 | As Arranged | Before Beginning Operations | Licensing Authorities |
| Legal & Accounting14 | 2,000 4,000 | As Arranged | Before Beginning Operations | Attorney, Accountant |
| Additional Funds15 | 100,000 | As Arranged | As Necessary | Employees, Utilities, |
| (3 months) | 200,000 | Lessor, Suppliers | ||
| TOTAL | $ 487,550 $ 1,133,400 |
NOTES
2 Real Estate/Rent.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 12–17)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, the estimated cost for insurance before beginning operations ranges from $7,000 to $15,000. This cost is paid to suppliers and is arranged before the commencement of operations.
The FDD specifies that franchisees must secure several types of insurance coverage within ninety (90) days of the Effective Date, but no later than the commencement of operations. These include property insurance, workers' compensation insurance with a minimum limit of $1,000,000, commercial general liability insurance with minimum limits of $1,000,000 per occurrence and $2,000,000 general aggregate, liquor liability/dram shop policy with a minimum liability coverage of $1,000,000 per occurrence and $2,000,000 in the aggregate, automobile liability insurance with limits of not less than $1,000,000 per occurrence, umbrella excess liability insurance with a minimum liability coverage of $2,000,000, business interruption insurance, cyber insurance policy with a minimum liability coverage of $1,000,000, and Restaurant Recovery Insurance (or equivalent) due to Food Borne Illness with a minimum liability coverage of $1,000,000.
The cost of insurance can vary based on factors such as the size and location of the franchised restaurant, the value of leasehold improvements, and the number of employees. These amounts paid for insurance are typically non-refundable, so it is important to inquire about the cancellation and refund policy of the insurance carrier or agent before purchasing.