Regarding Bonchon's required insurance coverage, must the coverage apply separately to each insured against whom a claim is brought, as if a separate policy had been issued to each insured?

According to Bonchon's 2025 Franchise Disclosure Document, the insurance coverage you acquire must apply separately to each insured party against whom a claim is filed, as if each insured party had their own individual policy. This requirement does not apply to workers' compensation, employer's liability, or any other employee-related insurance mandated by law. This means that Bonchon and other indemnified parties will be treated as if they each have a separate insurance policy, offering them greater protection in the event of a claim.

This provision ensures that Bonchon and other specified indemnitees receive the full benefit of the insurance coverage, without the policy limits being diluted by claims against the franchisee. It also prevents the insurance company from limiting or reducing coverage for Bonchon if a claim is made by one or more of the indemnitees. The franchisee is responsible for ensuring that their insurance policies include this 'separation of insureds' clause, which is a standard practice in franchising to protect the franchisor from vicarious liability.

As a Bonchon franchisee, it is important to understand that failure to maintain the required insurance coverage, including this specific clause, constitutes a material breach of the franchise agreement. This could lead to termination of the agreement if the breach is not waived by Bonchon. Furthermore, Bonchon has the right to modify the insurance requirements, including the types and amounts of coverage, by providing written notice to the franchisee. Therefore, it is crucial to stay informed about any changes to the insurance requirements and ensure that your policies are always in compliance.