What is the estimated range for insurance costs during the initial investment phase for a Mrcool franchise?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
| Amount | Method of Payment | When Due | ||
|---|---|---|---|---|
| Insurance | $5,625 - $12,375 | As arranged | As incurred | Insurers |
| Deposits – Three | ||||
| Months (Note 10) |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 18–23)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, the estimated initial investment for insurance deposits ranges from $5,625 to $12,375. This estimate covers the initial deposit required to secure the minimum required insurance coverage for the Mrcool Center.
The FDD specifies that this deposit is estimated to be equal to three months of monthly insurance premium payments. The actual insurance payments and their timing will depend on the agreement the franchisee makes with their insurance company and agent. Mrcool recommends that prospective franchisees consult with their insurance agent before signing a Franchise Agreement to get a more precise understanding of these costs.
This initial insurance deposit is a one-time upfront cost. Franchisees should factor this amount into their initial budget to ensure they have sufficient capital to cover all start-up expenses. Since the actual cost can vary, it is prudent for potential Mrcool franchisees to obtain quotes from multiple insurance providers to get an accurate estimate for their specific location and business needs.