Does a Buns On Fire franchisee need to obtain approval from Buns On Fire for their insurance carriers?

According to the 2025 Buns On Fire Franchise Disclosure Document, franchisees must obtain approval from Buns On Fire regarding their insurance carriers. Furthermore, franchisees must provide evidence of coverage as required by Buns On Fire.

Buns On Fire also specifies several requirements for the franchisee's insurance policies. Each policy must name Buns On Fire and its affiliates as additional insured parties and include a waiver of subrogation rights. The policy must provide 30 days' prior written notice to Buns On Fire for any material changes, cancellations, or expirations. It must also ensure that coverage applies separately to each insured party and contain no provisions that limit coverage in the event of a claim by a party indemnified under the Franchise Agreement. The insurance must be primary and extend to cover all obligations assumed by the franchisee under the Franchise Agreement.

These stipulations ensure that Buns On Fire is protected against potential liabilities arising from the franchisee's operations. Franchisees need to factor in the time and potential costs associated with obtaining insurance coverage that meets Buns On Fire's stringent requirements. Failing to secure approved insurance could result in a breach of the franchise agreement.