For how long must a Bonchon franchisee's business interruption insurance cover rental expenses, personnel maintenance, and fixed expenses, including royalty payments?

According to Bonchon's 2025 Franchise Disclosure Document, franchisees are required to maintain business interruption insurance. This insurance must be in sufficient amounts to cover the Bonchon Restaurant's rental expenses, the maintenance of competent personnel, and other fixed expenses, including the payment of continuing royalties to Bonchon.

The business interruption insurance policy must cover these expenses for a minimum of 12 months in the event of a loss of income. This requirement ensures that franchisees have a financial safety net to continue meeting their obligations, such as rent and royalty payments, and to retain essential staff during unforeseen circumstances that disrupt their business operations.

This type of insurance coverage is a standard requirement in many franchise systems. It protects both the franchisee and the franchisor by ensuring the business can weather unexpected disruptions and maintain its financial commitments. Prospective Bonchon franchisees should factor in the cost of this insurance when assessing the overall investment and operational expenses of the franchise.