What is the maximum deductible or self-insured retention allowed for the broad form comprehensive general liability insurance for a Bonchon franchise?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
of the previous month.
- [4] You must obtain and maintain the following insurance:
-
- 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
-
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 comprehensive general liability insurance and broad form contractual liability coverage. The aggregate coverage must be at least $2,000,000, with at least $1,000,000 per occurrence.
This insurance policy cannot have a deductible or self-insured retention exceeding $5,000. This means that for any claim, the franchisee is responsible for paying up to $5,000 out-of-pocket before the insurance coverage applies.
This requirement ensures that Bonchon franchisees have adequate liability coverage to protect both their business and the Bonchon brand from potential financial losses due to accidents, injuries, or other liabilities. Franchisees need to factor this deductible into their operating costs and ensure they can cover this amount in the event of a claim.