Insurance

This is an estimate of the range of expenses that a start-up franchisee may incur to purchase insurance meeting the coverage requirements that we identify in Item 8 for the initial period. Costs for insurance may vary substantially depending on geographic location of your Drugstore. We assume some conversion franchisees have adequate insurance in place meeting our minimum requirements before joining the franchise program and include a $2,500 allowance for any incremental costs attributable specifically to insurance to become a HEALTH MART Drugstore.