What is the estimated range for insurance costs for a Punch King Fitness franchise?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
| TYPE OF EXPENDITURE | AMOUNT | METHOD OF PAYMENT | WHEN DUE | TO WHOM | |
|---|---|---|---|---|---|
| PAYMENT IS MADE | |||||
| Insurance7 | $1,000 to $2,000 | As incurred | Before Beginning Operations | Insurance Companies |
7 You must purchase insurance in the following amounts and coverage: General Liability in the amount of $1,000,000. The amounts you pay for insurance are typically non-refundable. You should inquire about the cancellation and refund policy of the insurance carrier or agent at or before the time of purchase.
The insurance will not be limited in any way because of any insurance we maintain. Maintenance of the required insurance will not diminish your liability to us under the indemnities contained in the franchise agreement. The policy or policies will insure against our vicarious liability for actual and (unless prohibited by applicable law) punitive damages assessed against you.
We may require you to increase the minimum limits of and types of coverage to keep pace with regular business practice and prudent insurance custom.
Your insurance policies must insure us, you, and our respective affiliates, subsidiaries, owners, officers, directors, partners, members, employees, servants, and agents against any loss, liability, products liability, personal injury, death, or property damage that may accrue due to your operation of your Business. Your policies of insurance will contain a separate endorsement naming us and our affiliates as additional named insureds. You are required to submit an insurance certificate to our office on an annual basis.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 16–22)
What This Means (2024 FDD)
According to Punch King Fitness's 2024 Franchise Disclosure Document, the estimated cost for insurance ranges from $1,000 to $2,000. This cost is incurred before beginning operations and is paid to insurance companies. The insurance coverage must include general liability in the amount of $1,000,000.
The insurance policies must cover Punch King Fitness, the franchisee, and their respective affiliates, subsidiaries, owners, officers, directors, partners, members, employees, servants, and agents against any loss, liability, products liability, personal injury, death, or property damage that may occur due to the operation of the Punch King Fitness business. Additionally, the policies must include a separate endorsement naming Punch King Fitness and its affiliates as additional named insureds, and the franchisee is required to submit an insurance certificate to the franchisor's office annually.
The FDD notes that the amounts paid for insurance are typically non-refundable, and it advises prospective franchisees to inquire about the cancellation and refund policy of the insurance carrier or agent before purchasing insurance. Punch King Fitness also retains the right to mandate increases in the minimum limits and types of coverage to align with standard business practices and prudent insurance customs.