What evidence of insurance must a Buona franchisee provide to the franchisor, and how often?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchised Business shall not be opened for business prior to Franchisor's receipt of satisfactory evidence that all insurance required by this Agreement is in effect. Upon obtaining such insurance, and on each policy renewal date thereafter, Franchisee shall promptly submit evidence of satisfactory insurance and proof of payment therefore to Franchisor, together with, upon request, copies of all policies and policy amendments. The evidence of insurance shall include a statement by the insurer that the policy or policies will not be canceled or materially altered without at least thirty (30) days' prior written notice to Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, a franchisee must provide evidence of satisfactory insurance and proof of payment to Buona upon obtaining the required insurance. This evidence must also be submitted on each policy renewal date thereafter. Upon request, the franchisee must also provide copies of all policies and policy amendments.
The evidence of insurance must include a statement from the insurer confirming that the policy or policies will not be canceled or materially altered without at least thirty days prior written notice to Buona. This requirement ensures that Buona is promptly informed of any changes to the franchisee's insurance coverage, allowing them to assess and address any potential risks or gaps in coverage.
This requirement is typical in franchising, as franchisors need to protect their brand and manage risk across all franchise locations. By requiring proof of insurance and advance notice of cancellation, Buona can ensure that its franchisees maintain adequate coverage, protecting both the franchisee's business and the overall Buona brand from potential liabilities.