What minimum amount of liability insurance is a B Bops franchisee required to maintain?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
- (i) Insurance coverage. You will be required to maintain property insurance in the minimum amount of the full replacement valve of the premises and equipment, liability insurance in the minimum amount of $2,000,000 and workers compensation insurance as required by the laws of the applicable jurisdiction.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 21–23)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, franchisees must maintain certain insurance coverages. Specifically, B Bops requires franchisees to carry property insurance in an amount equal to the full replacement value of the premises and equipment.
In addition to property insurance, B Bops franchisees are obligated to secure liability insurance with a minimum coverage of $2,000,000. This protects both the franchisee and potentially B Bops from significant financial losses due to lawsuits or claims arising from accidents or injuries on the premises.
Furthermore, franchisees must also maintain workers' compensation insurance. The specific amount and terms of this coverage are dictated by the laws of the jurisdiction where the B Bops restaurant is located, ensuring compliance with local labor regulations and providing coverage for employee injuries or illnesses sustained during their employment.