Does the automobile liability insurance requirement for Bft apply if no vehicles are owned, leased, or hired/rented for the Franchise operation?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
personal and advertising injury, premises liability, third party property damage and bodily injury liability (including death).
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- Automobile Liability insurance covering liability arising out of your use, operation or maintenance of any auto (including owned, hired, and non-owned autos, trucks or other vehicles) in connection with your ownership and operation of the Franchise, with limits not less than the minimum compulsory requirements in your state (note: it is highly recommended to maintain at least $1,000,000 each accident combined single limit for bodily injury and property damage). T
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 32–36)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the automobile liability insurance requirement only applies if vehicles are owned, leased, or hired/rented for the franchise operation. Specifically, the FDD states that the franchisee must obtain automobile liability insurance covering liability arising out of the use, operation, or maintenance of any auto, including owned, hired, and non-owned autos, trucks, or other vehicles in connection with the franchise.
The document clarifies that this requirement is conditional. It explicitly states that the automobile liability insurance requirement only applies to the extent that owned, leased, or hired/rented vehicles are used in the operation of the franchise. This means that if a franchisee does not own, lease, or hire/rent any vehicles for their Bft franchise, they are not required to obtain automobile liability insurance.
It is important for prospective Bft franchisees to carefully assess their operational needs to determine whether they will need to use vehicles in their business. If vehicle use is anticipated, franchisees should ensure they obtain the required automobile liability insurance with limits not less than the minimum compulsory requirements in their state. The FDD also recommends maintaining at least $1,000,000 each accident combined single limit for bodily injury and property damage.