When are insurance costs due 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 |
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, insurance costs, which range from $1,000 to $2,000, are due before beginning operations. The method of payment is "as incurred," meaning the franchisee will pay the insurance companies directly as the costs arise.
It's important to note that this insurance coverage includes general liability in the amount of $1,000,000. Punch King Fitness may also require franchisees to increase the minimum limits and types of coverage to keep pace with regular business practice and prudent insurance custom. The franchisee's insurance policies must also insure Punch King Fitness, its 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 the franchisee's operation of the business.
Furthermore, the franchisee is required to submit an insurance certificate to Punch King Fitness's office on an annual basis. The amounts paid for insurance are typically non-refundable, so prospective franchisees should inquire about the cancellation and refund policy of the insurance carrier or agent before purchasing a policy.