Who is protected under the insurance policies that a Buona franchisee must procure?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, franchisees are required to obtain and maintain insurance policies that protect both the franchisee and Buona, along with their respective officers, directors, members, managers, employees, agents, and invitees. This broad coverage ensures that various stakeholders associated with both the franchise and the franchisor are protected against potential losses, liabilities, or expenses.
The insurance must cover personal injury, death, property damage, or casualty, including events like fire, lightning, theft, vandalism, malicious mischief, and other perils typically included in extended coverage endorsements. This comprehensive coverage is required for any incidents arising from, occurring upon, or in connection with the construction, operation, or occupancy of the franchised business.
Buona retains the right to reasonably require specific insurance coverage for its own and the franchisee's protection. This ensures that the insurance policies adequately address the risks associated with operating a Buona franchise and provide sufficient financial protection for all involved parties. The franchisee bears the expense of procuring and maintaining these insurance policies throughout the term of the franchise agreement.