Who pays for the insurance policies that a Buona franchisee is required to obtain?

see or to any local co-operative with respect to the maintenance, direction, or administration of the co-operative, including without limitation, any failure by any franchisees to make any contributions to the co-operative.

XII. INSURANCE

• 12.1 Insurance Program. Franchisee shall procure, by the deadlines listed in Section 12.2, and shall maintain in full force and effect during the Term at Franchisee's expense, an insurance policy or policies protecting Franchisee and Franchisor, and their officers, directors, members, managers, employees, agents and invitees, against any loss, liability, or expense whatsoever from personal injury, death or property damage or casualty, including fire, lightning, theft, vandalism, malicious mischief, and other perils normally included in an extended coverage endorsement arising from, occurring upon or in connection with the construction, operation or occupancy of the Franchised Business, as Franchisor may reasonably require for its own and Franchisee's protection.
• 12.2 Insurance Requirements. Such policy or policies shall be written by an insurance company satisfactory to Franchisor, and shall include, at a minimum the following coverage:
• (a) Workers' Compensation Insurance, with statutory limits as required by the laws and regulations applicable to the employees of Franchisee who are engaged in the performance of their duties relating to the Franchised Business, including any pre-opening training programs, as well as such other insurance as may be required by statute, ordinance or 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 Franchisee hires any employees.
• (b) Employer's Liability Insurance, for employee bodily injuries, and deaths, with a limit of $500,000 each accident; and for employee disease with a limit of $500,000. Such coverage must be obtained on or before the date Franchisee hires any employees.
• (c) Comprehensive or Commercial General Liability Insurance, covering claims for bodily injury, death and property damage, including Premises and Operations, Independent Contractors, Products and Completed Operations, Personal Injury, Contractual, and Broad Form Property Damage Liability coverages, to be obtained by the date the Approved Location has been determined, with limits as follows:

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 Franchised Business, with limits as follows:

Combined Single Limit of $1,000,000 for bodily injury, death and property damage per occurrence or Split liability limits of:

• $500,000 for bodily injury per person
• $500,000 for bodily injury per occurrence
• $250,000 for property damage;
• (e) Liquor Liability Insurance (if the Franchised Business will sell alcoholic beverages) with limits of $1,000.000 each common cause and $2,000,000 in the aggregate; to be obtained prior to the date the Franchised Business begins offering alcoholic beverages;
• (f) All Risk Property Insurance, on a replacement cost basis, with limits as appropriate, covering the real property of Franchisee and any real property which Franchisee may be obligated to insure by contract. Such real property may include, but is not limited to, buildings, machinery, equipment, furniture, fixtures and inventory;

Source: Item 22 — CONTRACTS (FDD page 78)