What is the minimum limit for each accident covered by the Employer's Liability Insurance that a Buona franchisee must obtain?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Franchise
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
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, ensuring that the franchisee is protected against potential liabilities arising from workplace accidents.
The minimum limit for each accident under the Employer's Liability Insurance is $500,000. Additionally, the policy must cover employee disease with a limit of $500,000. This coverage must be secured by the franchisee on or before the date they hire any employees, highlighting the importance of having this insurance in place from the outset of operations.
It is important to note that Buona requires this insurance to protect both the franchisee and the franchisor from potential financial losses due to workplace incidents. Ensuring compliance with these insurance requirements is a critical aspect of fulfilling the franchise agreement and maintaining a safe working environment for employees.