What is the required amount for Comprehensive Commercial Liability insurance (each occurrence) that a Stretch Zone franchisee must maintain?

According to Stretch Zone's 2025 Franchise Disclosure Document, franchisees are required to maintain Comprehensive Commercial Liability insurance. The minimum coverage required for each occurrence is $1,000,000. Additionally, the franchisee must maintain coverage for Damage to Rented Premises of $1,000,000 for each occurrence, Medical Payments of $2,000 for any one person, Personal and Advertising Injury of $1,000,000, General Aggregate of $5,000,000, and Products – Completed Operations Aggregate of $5,000,000.

It is important to note that Stretch Zone requires franchisees to use R.V. Johnson Insurance as their Insurance Agent. The FDD indicates that the ultimate cost for insurance can vary significantly based on factors such as the selection of the carrier, the size and location of the premises, the value of leasehold improvements, the amount of inventory, and the amount of wages paid. The estimated initial cost for insurance ranges from $1,750 to $4,000, but this is based on rates in effect in Florida and may not be representative of costs in other states.

Prospective franchisees should carefully consider these insurance requirements and obtain quotes from R.V. Johnson Insurance to understand the specific costs they will incur based on their individual circumstances. Understanding these costs is crucial for accurate financial planning and ensuring the business is adequately protected against potential liabilities. Franchisees should also be aware that the cost of workers' compensation insurance varies from state to state, which could further impact their overall insurance expenses.