When must a Buona franchisee obtain All Risk Property Insurance?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- (f) All Risk Property Insurance, on a replacement cost basis, with limits as appropriate, covering the real property of Franchisee and any real property which Franchisee may be obligated to insure by contract.
Such real property may include, but is not limited to, buildings, machinery, equipment, furniture, fixtures and inventory; Such coverage must be obtained prior to the delivery of installation of any equipment, furniture, fixtures, or inventory are delivered to the premises of the Franchised Business.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, a franchisee must obtain All Risk Property Insurance prior to the delivery or installation of any equipment, furniture, fixtures, or inventory to the premises of the Franchised Business. This insurance should be on a replacement cost basis with appropriate limits, covering the franchisee's real property and any real property they are contractually obligated to insure. This includes buildings, machinery, equipment, furniture, fixtures, and inventory.
This requirement ensures that the Buona location is protected against potential losses or damages from the moment these valuable assets are brought onto the premises. It is the franchisee's responsibility to secure this coverage before taking possession of these items, highlighting the importance of planning and coordination during the build-out phase.
By mandating this insurance, Buona aims to mitigate risks associated with property damage and protect both the franchisee's and the franchisor's interests. Franchisees should work closely with their insurance provider to ensure they have adequate coverage in place before the delivery of any equipment or inventory to avoid any potential gaps in protection.