When must a Buona franchisee obtain PCI DSS Liability coverage?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
he opening of the Franchised Business;
- (i) Cyber Insurance, covering breach, system failure, extortion and crime coverage with a limit of $1,000,000 each occ
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, a franchisee must obtain PCI DSS Liability coverage prior to opening their franchised business. This coverage must have a limit of $1,000,000 for each occurrence and in the aggregate.
This requirement ensures that Buona franchisees are protected against potential liabilities related to Payment Card Industry Data Security Standard (PCI DSS) compliance. PCI DSS is a set of security standards designed to protect credit card data, and non-compliance can result in significant fines and other penalties. By requiring this coverage, Buona aims to mitigate the financial risks associated with data breaches and other security incidents.
It is important for prospective Buona franchisees to factor in the cost of this insurance coverage when evaluating the overall investment required to start and operate a franchise. They should also discuss with their insurance provider the specific risks covered by the policy and any exclusions that may apply. Maintaining this coverage is a continuing obligation throughout the term of the franchise agreement.