What is the minimum coverage limit required for Cyber Insurance for a Buona franchise?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
erage of receipts of the Franchised Business for the trailing twelve months prior to the interruption, in an amount not less than the actual loss resulting from an interruption of business for a minimum of twelve (12) months; to be obtained prior to
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, franchisees are required to obtain Cyber Insurance with a minimum coverage limit of $1,000,000 per occurrence and in the aggregate. This insurance must cover breaches, system failures, extortion, and crime.
The Cyber Insurance policy must be secured before the installation and use of the computer system for the Buona franchised business. This requirement ensures that the franchisee has adequate protection against potential cyber threats from the outset of operations.
This type of insurance is increasingly important for businesses, especially those that rely heavily on computer systems and handle sensitive data. The coverage helps to mitigate the financial impact of cyber incidents, which can include data breaches, system downtime, and legal liabilities.
By requiring this insurance, Buona aims to protect both the franchisee's business and the overall brand from the potential damages associated with cyber risks. Franchisees should factor in the cost of this insurance when evaluating the financial feasibility of opening a Buona franchise.