Which article of the Buns On Fire Franchise Agreement specifies insurance requirements for franchisees?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
other property in which the Franchisor may have an interest, with a replacement cost clause attached, agreed amount endorsement equal to one hundred (100%) percent replacement the value of the property, including buildout, improvement and betterments, equipment , furniture, fixtures and inventory;
(iii.) Liquor liability coverage in amounts identified in the Confidential Operations Manual or an addendum thereto if alcohol will be served.
(iv.) Employer's Liability, Workers' Compensation, and such other insurance as may be required by statute or rule of the state or locality in which Franchisee's Buns on Fire is located and operated;
(v.) Business interruption insurance in sufficient amounts to cover twelve (12) months of revenue but not less than $100,000. Franchisor shall be named as an additional insured and loss payee in an amount equal to the royalties that would have been paid based on the Gross Revenue of the Franchised Business for the preceding twelve (12) month period, or prorated for such shorter period (if the Franchised Business has not been in operation for twelve (12) months), and shall expressly provide that any interest of same therein shall not be affected by any breach of Franchisee of any policy provisions for which such certificates evidence coverage; and
(vi.) Products liability and completed operation insurance; and
(vii.) Any other insurance coverage as required by the State, Federal or local municipality in which the franchised premises is located, as required by Franchisor, or as required by the lease for the Franchised Business premises.
Franchisee may, with the prior written consent of Franchisor, elect to hav
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 22–24)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, Article 12 outlines the insurance requirements for franchisees. Specifically, section 12.1 states that franchisees must obtain and maintain insurance coverage as required by Buns On Fire and their landlord.
Buns On Fire requires franchisees to maintain several types of insurance, including employer's liability, worker's compensation, business interruption insurance (covering 12 months of revenue, but not less than $100,000), products liability, and completed operation insurance. Buns On Fire must be named as an additional insured and loss payee for the business interruption insurance, covering royalties based on the previous 12 months' gross revenue. Franchisees must also carry any other insurance required by state, federal, or local municipalities, as well as any insurance required by the lease for the franchised premises.
The insurance coverage must extend to all individuals providing services at the franchised business and protect against the actions of patrons. Additionally, the insurance policies must include a waiver of subrogation against Buns On Fire. Franchisees have the option to elect reasonable deductibles with the prior written consent of Buns On Fire. Franchisees must also provide certificates of insurance to Buns On Fire as evidence of coverage.