Where can Bft franchisees find the minimum insurance coverages and coverage amounts they are required to maintain?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
under this Agreement.
Notwithstanding anything to the contrary in this Agreement, Franchisee agrees that Franchisor does not control or own any of the following Personal Information (collectively, the "Restricted Data"): (a) any Personal Information of employees, officers, contractors, owners or other personnel of Franchisee, its affiliates, or the Studio; (b) such other Personal Information as Franchisor may from time to time expressly designate as Restricted Data; and/or (c) any other Personal Information to which Franchisor does not have access. Regardless of any guidance Franchisor may provide generally and/or any specifications that Franchisor may establish for Personal Information, Franchisee has sole and exclusive responsibility for all Restricted Data, including establishing protections and safeguards for such Restricted Data.
10.5 Insurance.
- A. Prior to the Studio's Soft Opening and throughout the entire Term, Franchisee will keep in force at Franchisee's own expense and by advance payment of the premium, all insurance coverages required by applicable law, and that it believes are appropriate for its own protection; Franchisee must, at a minimum, maintain the minimum insurance coverages and coverage amounts specified in the Learning Management System from time to time, which as of the Effective Date are as follows:
- (1) Commercial General Liability insurance covering Franchisee's day-to-day business operations and premises liability exposures with limits not less than the following:
Required Coverage Minimum Limits of Coverage
Each Occurrence: $1,000,000
General Aggregate: $5,000,000 (per Studio)
Products/Completed Operations Aggregate: $5,000,000 Personal and Advertising Injury: $1,000,000 Participant Legal Liability: $1,000,000 Professional Liability: $1,000,000 Damage to Rented Premises (per occurrence): $1,000,000 Employee Benefits Liability (per employee): $1,000,000 Employee Benefits Liability (aggregate): $2,000,000 Medical Expense (any one person): $5,000
Sexual Abuse and Molestation: Included (not excluded)
Such insurance shall include coverage for contractual liability (for liability assumed under an "insured contract"), products-completed operations, personal and advertising injury, premises liability, third party property damage and bodily injury liability (including death).
- (2) Automobile Liability insurance covering liability arising out of Franchisee's use, operation or maintenance of any auto (including owned, hired, and non-owned autos, trucks or other vehicles) in connection with its ownership and operation of the franchise, with limits not less than the minimum compulsory requirements in Franchisee's state. This requirement only applies to the extent that owned, leased or hired/rented vehicles are used in the operation of the franchise.
- (3) Workers Compensation insurance covering all of Franchisee's employees with statutory coverage and limits as required by state law. Such insurance shall include coverage for Employer's Liability with limits not less than $500,000 each accident, $500,000 disease – each employee, and $500,000 disease – po
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, franchisees can find the minimum insurance coverages and coverage amounts they are required to maintain in the Learning Management System. As of the effective date of the FDD, the minimum insurance coverages are detailed in Item 23.
Bft requires franchisees to maintain Commercial General Liability insurance with specific limits: $1,000,000 for each occurrence, $5,000,000 for the general aggregate (per Studio) and for Products/Completed Operations Aggregate, $1,000,000 for Personal and Advertising Injury, Participant Legal Liability, Professional Liability, and Damage to Rented Premises (per occurrence), $1,000,000 per employee and $2,000,000 aggregate for Employee Benefits Liability, and $5,000 for Medical Expense (any one person). The policy must include coverage for Sexual Abuse and Molestation and contractual liability.
In addition to Commercial General Liability insurance, Bft franchisees must also maintain Automobile Liability insurance, Workers Compensation insurance, Property insurance, and Employment Practices Liability insurance. The Automobile Liability insurance must cover the minimum compulsory requirements in the franchisee's state. The Workers Compensation insurance must include coverage for Employer's Liability with limits not less than $500,000 each accident, $500,000 disease – each employee, and $500,000 disease – policy limit. The Property insurance must cover the current replacement cost and include glass coverage with limits not less than $25,000, signage coverage with limits not less than $10,000, and business interruption/extra expense coverage with limits not less than twelve months of rent. The Employment Practices Liability insurance must have limits of not less than $1,000,000 per claim in the aggregate, with a retention not larger than $25,000.
Bft also reserves the right to modify these insurance requirements, and franchisees must comply with any revisions within 60 days of notice. Franchisees must provide certificates of coverage to Bft annually, and failure to maintain the required insurance can result in termination of the franchise agreement.