When must a Buona franchisee obtain Liquor Liability Insurance?

According to Buona's 2025 Franchise Disclosure Document, if a franchisee intends to sell alcoholic beverages at their Buona restaurant, they must obtain Liquor Liability Insurance. This insurance must be secured before the date the franchised business begins offering alcoholic beverages to customers.

The required Liquor Liability Insurance must have limits of $1,000,000 for each common cause and $2,000,000 in the aggregate. Additionally, Buona requires franchisees to obtain Umbrella/Excess Liability Insurance on a Follow Form basis with a limit of $5,000,000 per occurrence and in the aggregate with Employer's Liability, General Liability, Auto Liability and, if applicable, Liquor Liability. This Umbrella/Excess Liability Insurance must be obtained by the date the Approved Location has been determined.

It is important for prospective Buona franchisees to factor in the cost of this insurance when projecting their operating expenses, especially if they plan to sell alcohol. Failing to obtain and maintain the required insurance coverage could result in Buona procuring the insurance on the franchisee's behalf, with the franchisee responsible for the cost, plus interest and administrative fees. Franchisees should also be aware that Buona retains the right to increase the minimum limits of insurance coverage or otherwise modify the insurance requirements.