Does the automobile liability insurance requirement for Bft apply if no vehicles are used in the franchise operation?

According to Bft's 2025 Franchise Disclosure Document, the automobile liability insurance requirement only applies if vehicles are used in the operation of the franchise. Specifically, this insurance covers liability arising from the franchisee's use, operation, or maintenance of any vehicle, including owned, hired, and non-owned vehicles, trucks, or other autos, in connection with the franchise.

This means that if a Bft franchisee does not use any vehicles in their business operations, they are not required to carry automobile liability insurance. This could be the case if the studio is located in an area where members and staff primarily walk, bike, or use public transportation, or if the franchisee outsources all tasks requiring vehicle use.

However, it is important for prospective franchisees to carefully assess their business operations and local conditions to determine whether vehicle use is truly unnecessary. If there is any possibility that vehicles will be used, even occasionally, it would be prudent to maintain automobile liability insurance to protect against potential risks. Additionally, franchisees should be aware that Bft reserves the right to upgrade the insurance requirements or lower the required amounts as to policy limits, deductibles, scope of coverage, or rating of carriers in response to current industry standards, market conditions and/or landlord requirements.