If a Bonchon franchisee operates a Remote Kitchen Restaurant and the lease requires additional insurance, when must certificates of insurance evidencing such additional coverage be provided?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
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, if a franchisee operates a Remote Kitchen Restaurant and the lease requires additional insurance coverage, the franchisee must provide Bonchon with certificates of insurance evidencing this additional coverage no later than five days after the franchisee is required to purchase the insurance under the lease.
Furthermore, the franchisee must provide these certificates at least five days after each policy's expiration or renewal date. This ensures that Bonchon is always aware of the franchisee's current insurance coverage and that there are no gaps in coverage.
Bonchon also requires that the certificates evidence proper coverage as mandated by the Franchise Agreement and the Manuals. Additionally, each certificate must include a copy of the endorsement amending any clause in the policy related to other insurance, confirming that all coverage is primary and that Bonchon's insurance is applicable only after the franchisee's policy limits are exhausted. Failure to comply with these insurance requirements constitutes a material breach of the Franchise Agreement, potentially leading to immediate termination of the agreement without an opportunity to cure the breach.