What is the minimum combined single limit for automobile liability insurance required if a Bonchon franchisee operates any vehicle in connection with the business?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
000,000 per occurrence and in the aggregate.
-
- Business interruption insurance in sufficient amounts to cover your Bonchon Restaurant rental expenses, maintenance of competent personnel and other fixed ex
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 any vehicle in connection with their Bonchon business, they must maintain automobile liability insurance with a combined single limit of $1,000,000. This insurance coverage applies to any owned, hired, or non-owned automobile used in the Bonchon business.
This requirement means that a Bonchon franchisee needs to secure an insurance policy that covers up to $1,000,000 for any single accident involving a vehicle used for business purposes, regardless of whether the vehicle is owned by the franchisee, rented, or used by an employee. This coverage is crucial for protecting the franchisee's assets in the event of an accident that results in bodily injury or property damage to others.
Franchisees should factor in the cost of this insurance when evaluating the overall investment and operating expenses of a Bonchon franchise. It is important to consult with an insurance professional to obtain a policy that meets these minimum requirements and adequately protects the business from potential liabilities. Failing to maintain the required insurance coverage could result in a breach of the franchise agreement and potential legal and financial repercussions.