What is the minimum property damage limit for Comprehensive Automobile Liability Insurance for a Buona franchise?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
llows:
Occurrence/Aggregate Limit of $1,000,000 for bodily injury, death and property damage each occurrence and $2,000,000 for general aggregate; $2,000,000 for Products/Completed operations in the aggregate, $1,000,000 each occurrence; and $1,000,000 personal advertising injury.
(d) Comprehensive Automobile Liability Insurance, if applicable, covering owned, non-owned and hired vehicles, to be obtained prior to the use of any vehicles in the operation of
the Fr
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 Comprehensive Automobile Liability Insurance. This insurance covers owned, non-owned, and hired vehicles used in the operation of the franchised business. The minimum property damage limit is $250,000 per occurrence.
Buona franchisees have two options for meeting the Comprehensive Automobile Liability Insurance requirement. They can either obtain a Combined Single Limit of $1,000,000 for bodily injury, death, and property damage per occurrence, or they can opt for split liability limits. If choosing the split liability limits, they must secure $500,000 for bodily injury per person and $500,000 for bodily injury per occurrence, in addition to the $250,000 for property damage.
It is important to note that this insurance must be obtained before using any vehicles in the operation of the Buona franchise. Failure to maintain the required insurance coverage could result in a breach of the franchise agreement. Franchisees should consult with an insurance professional to ensure they obtain adequate coverage that meets Buona's requirements and protects their business from potential liabilities.