What evidence of insurance must a Buona franchisee provide to the franchisor, and what statement must be included from the insurer?
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 22 — CONTRACTS (FDD page 78)
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 and 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 that the policy or policies will not be canceled or materially altered without at least thirty (30) days' prior written notice to Buona. This requirement ensures that Buona is informed of any changes to the insurance coverage, allowing them to take necessary steps to protect their interests.
This requirement is typical in franchising, as franchisors need to ensure that franchisees maintain adequate insurance coverage to protect both the franchisee's business and the Buona brand from potential liabilities. The 30-day notice provides a safety net, giving Buona time to ensure continuous coverage if a policy is canceled or altered.