When must a Buona franchisee obtain Comprehensive Automobile Liability Insurance?

According to Buona's 2025 Franchise Disclosure Document, if applicable, franchisees must obtain Comprehensive Automobile Liability Insurance prior to using any vehicles in the operation of the franchised business.

This insurance covers owned, non-owned, and hired vehicles. The required coverage includes a combined single limit of $1,000,000 for bodily injury, death, and property damage per occurrence. Alternatively, franchisees can opt for split liability limits of $500,000 for bodily injury per person, $500,000 for bodily injury per occurrence, and $250,000 for property damage.

For a prospective Buona franchisee, this means that if the business operations involve the use of any vehicles, such as for deliveries or other business-related activities, the franchisee must secure the necessary automobile liability insurance before those vehicles are put into service. Failing to do so would be a breach of the franchise agreement and could expose the franchisee to significant financial risk in the event of an accident.

It is important for franchisees to understand these requirements and ensure they have the appropriate coverage in place to protect their business and comply with the terms of the franchise agreement. Franchisees should consult with an insurance professional to determine the best coverage options for their specific needs and circumstances.