What is the minimum combined single limit required for automobile liability insurance if a vehicle is operated in connection with a Bonchon franchise?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
00 per occurrence and in the aggregate.
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- 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. This insurance must have a combined single limit of $1,000,000 for any owned, hired, or non-owned automobile used in the business.
This requirement ensures that Bonchon franchisees have adequate coverage in case of an accident involving a vehicle used for the business. The $1,000,000 limit is designed to protect against potential liabilities arising from property damage, bodily injury, or other losses caused by the vehicle's operation. Franchisees need to factor in the cost of this insurance when assessing the overall financial investment required to start and run a Bonchon franchise.
It is important for prospective franchisees to understand that Bonchon requires this insurance coverage to be in effect at all times during the term of the Franchise Agreement. Failure to maintain the required insurance could result in a breach of the agreement. Franchisees should consult with insurance providers to obtain the necessary coverage and ensure they meet Bonchon's requirements.
This type of insurance requirement is common in franchising, particularly for businesses that involve vehicle use, such as delivery services. The specific amount of coverage required can vary among different franchise systems, reflecting the potential risks associated with each business model.