By what date must a Buona franchisee obtain Comprehensive or Commercial General Liability Insurance?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
hires any employees.
- (b) Employer's Liability Insurance, for employee bodily injuries, and deaths, with a limit of $500,000 each accident; and for employee disease with a limit of $500,000. Such coverage must be obtained on or before the date Franchisee hires any employees.
- (c) Comprehensive or Commercial General Liability Insurance, covering claims for bodily injury, death and property damage, including Premises and Operations, Independent Contractors, Products and Completed Operations, Personal Injury, Contractual, and Broad Form Property Damage Liability coverages, to be obtained by the date the Approved Location has been determined, with limits as f
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, a franchisee must obtain Comprehensive or Commercial General Liability Insurance by the date the Approved Location has been determined. This insurance coverage is required to cover claims for bodily injury, death, and property damage, including various liabilities such as Premises and Operations, Independent Contractors, Products and Completed Operations, Personal Injury, Contractual, and Broad Form Property Damage Liability.
The policy must have specific limits: an Occurrence/Aggregate Limit of $1,000,000 for bodily injury, death, and property damage each occurrence and $2,000,000 for general aggregate; $2,000,000 for Products/Completed operations in the aggregate, $1,000,000 each occurrence; and $1,000,000 personal advertising injury.
This requirement ensures that both the franchisee and Buona are protected against potential liabilities arising from the operation of the franchised business. The franchisee needs to coordinate with an insurance company to secure this coverage as soon as the location is approved to avoid any delays in starting construction or build-out.