When must a Bft franchisee obtain all required insurance, governmental permits, certificates, or licenses?

According to Bft's 2025 Franchise Disclosure Document, a franchisee must provide a copy of a Certificate of Insurance to Bft, with Bft listed as an additional insured, at least 30 days before commencing studio operations. This certificate serves as proof that the franchisee has met the necessary insurance requirements.

Furthermore, the franchisee is responsible for securing all necessary permits, licenses, and other legal or architectural requirements to meet system standards. This obligation extends to any remodeling or alterations made to the studio, ensuring compliance with local laws and regulations. The franchisee must obtain these permits before starting any construction or renovation work.

Failure to obtain or maintain the required insurance coverage can lead to immediate termination of the franchise agreement. The franchisee is solely responsible for any losses, claims, or causes of action arising after the lapse or termination of insurance coverage, highlighting the critical importance of maintaining continuous and adequate insurance. This requirement is typical in franchising, as franchisors need to protect their brand and avoid liability from franchisee operations.