When must a Bonchon franchisee provide certificates of insurance evidencing required coverage prior to commencing activities or operations?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
For the avoidance of doubt, you must secure all necessary insurance coverage, including (but not limited to), worker's compensation, disability and general liability, prior to and in order secure coverage for your actions and omissions during the Initial Training Program or Partner Training Program (as applicable). These coverage requirements are subject to change. If you are operating a Remote Kitchen Restaurant, you may be required to procure and maintain additional insurance coverage pursuant to the terms of the lease for your Restaurant Location. You agree to procure and maintain such additional insurance coverage in accordance with the terms of the lease for your Restaurant Location.
9.01 Your Required Insurance Coverage
- A. Within ten days following our execution of this Agreement, and thereafter at all times throughout the term of this Agreement, you agree to purchase at your own expense, and maintain in effect at all times, the following categories of insurance coverage in forms and through insurance companies satisfactory to us:
You will not be allowed to open your Bonchon Restaurant without our written approval, which we will not unreasonably withhold. In order to obtain our approval to open, you must: obtain all required state, local and other required government certifications, permits and licenses (including, if you will sell liquor, a liquor license), furnish to us copies of all such required permits and licenses; furnish to us copies of all insurance policies required under this Agreement;
At least one week prior to commencing construction, you must arrange for your general contractor to send us a copy of the construction schedule for the development of your Restaurant. You must provide us with comprehensive information regarding all phases of the development process of the Restaurant Location as we may require, such as weekly progress reports during construction or conversion, in the format we designate. This information will include (without limitation and as applicable) the names, addresses and telephone numbers of your civil engineer, surveyor, subcontractors, principal vendors and environmental consultant, and the primary contact for each; copies of all permits, licenses, contractor's liability insurance certificates and other similar items required for the construction or conversion of your Restaurant;
If you are operating a Remote Kitchen Restaurant and the lease for your Restaurant Location requires that you purchase additional insurance coverage, you agree to promptly provide us with certificates of insurance evidencing such additional insurance coverage no later than five (5) days after you are required to purchase such insurance under the lease and, thereafter, at least five (5) days after each policy expiration/renewal date.
certificates must evidence proper coverage as required by this Agreement and the Manuals. Attached to each certificate shall be a copy of the endorsement amending any clause in the subject policy which relates to other insurance and confirming that all coverage is primary insurance and that our insurance (and the insurance of the other Indemnitees identified in Section 8.11 above) is applicable only after all limits of your policy(ies) are exhausted.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, a franchisee must secure all necessary insurance coverage, including worker's compensation, disability, and general liability, before securing coverage for actions and omissions during the Initial Training Program or Partner Training Program.
Bonchon requires franchisees to furnish copies of all required insurance policies to them to get approval to open their restaurant. Additionally, at least one week before starting construction, the franchisee must arrange for their general contractor to send Bonchon a copy of the construction schedule. The franchisee must also provide copies of contractor's liability insurance certificates.
Within ten days after the execution of the Franchise Agreement, the franchisee must purchase and maintain the required insurance coverage throughout the term of the agreement. If operating a Remote Kitchen Restaurant, the franchisee must promptly provide certificates of insurance evidencing any additional insurance coverage required by the lease no later than five days after being required to purchase it under the lease, and thereafter, at least five days after each policy expiration/renewal date. The certificates must evidence proper coverage as required by the agreement and manuals, including endorsements confirming primary coverage.