Are Bonchon franchisees required to obtain additional insurance if they operate a Remote Kitchen, and where are the minimum requirements for this additional insurance outlined?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
If you will operate a Remote Kitchen, you may be required to obtain additional insurance that meets the minimum requirements as outlined in your lease agreement or operating agreement for your Restaurant Location.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 37–42)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, franchisees operating a Remote Kitchen may need to acquire additional insurance. The specific minimum requirements for this additional insurance are detailed in either the lease agreement or the operating agreement for the Restaurant Location.
This means that if a franchisee chooses to operate a Remote Kitchen, they should carefully review their lease and operating agreements to understand the exact insurance coverage they must secure. The requirements are not standardized across all Bonchon franchises but are instead dependent on the specific agreements governing the location.
Prospective franchisees should pay close attention to these agreements and consult with an insurance professional to ensure they obtain the necessary coverage. Failure to meet these insurance requirements could result in a breach of the franchise agreement and potential liabilities for the franchisee. It is important to clarify these requirements during the due diligence process before finalizing any agreements with Bonchon.