What is the minimum coverage limit required for Employer's Liability Insurance for employee disease for a Buona franchise?

According to Buona's 2025 Franchise Disclosure Document, franchisees are required to maintain Employer's Liability Insurance with specific coverage limits. This insurance covers employee bodily injuries and deaths, with a limit of $500,000 for each accident. Additionally, it includes coverage for employee disease, also with a limit of $500,000. This insurance must be secured before the franchisee hires any employees.

This requirement ensures that Buona franchisees have adequate financial protection in the event of employee injuries, illnesses, or fatalities. By setting a minimum coverage limit, Buona aims to protect both the franchisee and its employees, ensuring that there are sufficient funds available to cover potential liabilities. This is a standard practice in franchising, as franchisors typically set minimum insurance requirements to mitigate risks across the entire franchise system.

The franchisee is responsible for procuring and maintaining this insurance policy throughout the term of the franchise agreement. The policy must be written by an insurance company that Buona finds satisfactory. It's important for prospective franchisees to factor in the cost of this insurance when evaluating the overall investment required to start and operate a Buona franchise. Failing to obtain and maintain the required insurance coverage could result in the franchisor procuring the insurance themselves and charging the franchisee for the cost, along with interest and administrative fees.

In addition to the Employer's Liability Insurance, Buona franchisees must also obtain Workers' Compensation Insurance with statutory limits as required by applicable laws and regulations. They are also required to obtain other types of insurance such as Commercial General Liability Insurance, Automobile Liability Insurance, Liquor Liability Insurance (if applicable), All Risk Property Insurance, Umbrella/Excess Liability Insurance, Business Interruption Insurance, Cyber Insurance, and PCI DSS Liability coverage. These insurance requirements collectively aim to protect the franchisee, the franchisor, and their respective interests from a variety of potential risks and liabilities.