Can a Buona franchisee self-insure any of the required insurance coverages without the Franchisor's consent?

According to Buona's 2025 Franchise Disclosure Document, franchisees are not allowed to self-insure any of the required insurance coverages without obtaining prior written consent from Buona. This consent can be withheld at Buona's discretion.

This requirement means that franchisees must secure all necessary insurance policies through approved third-party insurance providers, ensuring that Buona maintains control over the types and levels of coverage in place. Self-insurance, where a business sets aside its own funds to cover potential losses, is not permitted unless Buona explicitly approves it in writing.

The inability to self-insure without consent ensures that all Buona locations maintain consistent and adequate insurance coverage, protecting both the franchisee and the franchisor from potential financial losses due to unforeseen events. This requirement helps Buona manage risk across its franchise system and uphold brand standards. Franchisees need to factor in the costs of obtaining and maintaining the required insurance policies from external providers, as these cannot be substituted with a self-insurance arrangement unless specifically approved by Buona.