What are the minimum coverage limits required for the umbrella/excess liability insurance policy that Bonchon franchisees must maintain?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
rules or regulations);
-
- Umbrella/Excess liability policy with limits not less than $2,000,000 per occurren
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 37–42)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, franchisees are required to maintain an umbrella/excess liability insurance policy with minimum coverage limits of $2,000,000 per occurrence and $2,000,000 in the aggregate.
This insurance requirement is in addition to other insurance policies Bonchon franchisees must carry, such as general liability, liquor liability (if applicable), business interruption, auto liability, and worker's compensation. The umbrella policy provides an extra layer of protection above these primary policies, covering potential losses that exceed the limits of the primary insurance.
For a prospective Bonchon franchisee, this means factoring in the cost of this additional insurance coverage when assessing the overall financial investment. Failing to maintain the required insurance coverage could result in a breach of the franchise agreement and potential termination of the franchise.