What are the minimum coverage amounts required for Employer's Liability Insurance regarding Bodily Injury by Accident and Bodily Injury by Disease for a Bonchon franchise?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
enses (including payment of Continuing Royalties to us) for a minimum of 12 months loss of income.
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- If any vehicle is operated in connection with the Business, automobile liability insurance with a combined single limit of $1,000,000 for any owned, hired, or non-owned automobile used in your business.
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- Workers Compensation Insurance providing Statutory Benefits, as required by applicable state law, and Employer's Liability
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, franchisees are required to maintain Employer's Liability Insurance with specific coverage amounts. For Bodily Injury by Accident, the minimum coverage required is $1,000,000 for Each Accident. For Bodily Injury by Disease, the minimum coverage is $1,000,000 for each employee and $1,000,000 policy limit.
This insurance coverage is a crucial part of the overall insurance requirements for operating a Bonchon franchise. It protects the franchisee from potential financial liabilities arising from workplace accidents or illnesses suffered by employees. Ensuring that these minimum coverage amounts are met is essential for compliance with the franchise agreement and applicable state laws.
Bonchon also mandates that the Workers Compensation policy coverage includes all states in which operations are conducted. This implies that if a franchisee has operations in multiple states, the insurance policy must provide coverage across all those states. Franchisees must secure all necessary insurance coverage, including worker's compensation, disability, and general liability, prior to and in order to secure coverage for their actions and omissions during the Initial Training Program or Partner Training Program.
It is important for prospective Bonchon franchisees to understand these insurance requirements and factor the costs of obtaining and maintaining the necessary coverage into their financial planning. These coverage requirements are subject to change, and franchisees should stay informed of any updates to ensure continued compliance.