When must a Buona franchisee obtain Workers' Compensation Insurance?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Workers' Compensation Insurance, with statutory limits as required by the laws and regulations applicable to the employees of Franchisee who are engaged in the performance of their duties relating to the Franchised Business, including any pre-opening training programs, as well as such other insurance as may be required by statute, ordinance or regulation of the state or locality in which the Franchised Business is located; Franchisor reserves the right to require that owners and executive officers not be excluded from this coverage. Such coverage must be obtained on or before the date Franchisee hires any employees.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, a franchisee must obtain Workers' Compensation Insurance on or before the date they hire any employees. This requirement applies to all employees engaged in duties related to the franchised business, including those in pre-opening training programs.
The purpose of Workers' Compensation Insurance is to cover loss, liability, or expense from personal injury or death. It is also meant to cover property damage or casualty for employees. The policy must adhere to the statutory limits required by the laws and regulations applicable to the franchisee's employees.
Buona also reserves the right to require that owners and executive officers are not excluded from this coverage. This ensures comprehensive protection for all individuals involved in the business. Failing to obtain and maintain this insurance could result in Buona procuring the insurance themselves and charging the franchisee for the cost, plus interest and administrative fees.