What does Bonchon's training cover regarding 'Minimum Insurance Requirements'?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
You will not be allowed to open your Bonchon Restaurant without our written approval, which we will not unreasonably withhold. In order to obtain our approval to open, you must: obtain all required state, local and other required government certifications, permits and licenses (including, if you will sell liquor, a liquor license), furnish to us copies of all such required permits and licenses; furnish to us copies of all insurance policies required under this Agreement; attend and successfully complete our Initial Training Program or Partner Training Program (as applicable) to our satisfaction (as provided in this Agreement); pay us or our affiliates any amounts due through the date that you request our approval to open; not be in default under any agreement with us or any affiliate of ours; not be in default under, but instead be current with, all contracts or agreements with your principal vendors, suppliers and other business creditors (including the lessor or sublessor of your Restaurant Location, us and our affiliates); and, otherwise comply in all respects with the pre-opening obligations set forth in this Agreement and/or our Manuals or other written notices we may furnish to you. In addition, before you may open your Restaurant, you must meet minimum stated staffing requirements at least five days prior to the start of training and pass a pre-opening inspection that we will conduct prior to the on-site opening training and assistance that we provide upon the opening of your Restaurant.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Bonchon's training program does not specifically cover the details of 'Minimum Insurance Requirements'. However, franchisees are required to furnish copies of all insurance policies required under the Franchise Agreement to Bonchon before opening their restaurant.
Item 23 of the FDD outlines the required insurance coverage that franchisees must obtain and maintain throughout the term of the agreement. This includes various types of insurance such as comprehensive general liability coverage ($2,000,000 aggregate/$1,000,000 per occurrence), special cause of loss coverage, dram shop liquor liability insurance ($1,000,000 per occurrence/aggregate), business interruption insurance, automobile liability insurance ($1,000,000 combined single limit), and workers compensation insurance ($1,000,000 per accident/disease).
Additionally, franchisees must secure builders' and/or contractor's insurance during construction, insurance coverage sufficient to satisfy indemnification obligations, umbrella liability coverage ($2,000,000 minimum), and employment practices liability insurance ($250,000 limit). The FDD states that 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.
Since the FDD does not describe training on insurance requirements, prospective franchisees should ask Bonchon for details on how these requirements are communicated and reinforced during training, and whether any specific guidance or resources are provided to help franchisees understand and meet these obligations.