For a Bonchon franchise, what is the minimum broad form contractual liability coverage required?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
of the previous month.
- [4] You must obtain and maintain the following insurance:
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- Broad form comprehensive general liability insurance, and broad form contractual liability coverage of at least $2,000,000 aggregate and at least $1,000,000 per occurrence. This insurance may not have a deductible or self-insured retent
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Source: Item 6 — OTHER FEES (FDD pages 13–24)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, franchisees must maintain broad form contractual liability coverage. The minimum required coverage is $2,000,000 in the aggregate and $1,000,000 per occurrence.
This insurance coverage is a standard requirement in franchising, designed to protect both the franchisee and Bonchon from potential liabilities arising from the franchisee's operations. The aggregate limit represents the total amount the insurance company will pay out for all claims during the policy period, while the per occurrence limit is the maximum payout for any single incident.
Bonchon franchisees should ensure that their insurance policies meet these minimum requirements and that the deductible or self-insured retention does not exceed $5,000. Failure to maintain adequate insurance coverage could result in a breach of the franchise agreement and potential financial exposure for the franchisee.