Are Bft franchisees required to purchase insurance coverage from approved suppliers, and is this subject to any conditions?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Approved Supplier does not mean that such Approved Supplier's prices will be lower than those of other suppliers.
Currently, we have Approved Suppliers for the following items that you must purchase in connection with the establishment and/or operation of your Studio: (i) Pre-Sales and Soft Opening Retail Inventory Kit, as well as
certain other ongoing inventory items; (ii) the Fitness Equipment & Initial FF&E Package; (iii) the Pre-Opening Instructor Training that your instructors must complete to become Authorized Instructors (and related materials); (iv) certain other exercise equipment/supplies; (v) Audio / Visual Package; (vi) insurance coverage (subject to applicable law where the Studio is located); (vii) shipping and installation services; (viii) training materials associated with the Fundamentals Training Program and the Pre-Opening Instructor Training; and (ix) the POS System and then-current software we require you to use in connection with that POS System and your Studio, including, without limitation, any software and technology we determine to provide to you as part of our System in connection with your then-current Technology Fee.
We may develop proprietary products for use in your Studio, including private-label products that bear our Marks, and require you to purchase these items from us or our affiliate(s).
If you wish to purchase a product or service that we require you to purchase from an Approved Supplier from an alternate source, then you must obtain our prior written approval as outlined more fully in this Item. We may provide our standards and specifications for our Approved Products and Approved Services directly to our Approved Suppliers, and may provide these standards and specifications to an alternative supplier you propose if: (i) we approve the supplier in writing as outlined more fully in this Item; and (ii) the alternative supplier agrees to sign our prescribed form of non-disclosure agreement with respect to any Confidential Information we disclose.
As of the date of this Disclosure Document: (i) other than the Pre-Sales and Soft Opening Retail Inventory Kit, the technology services we provide in exchange for our then-current Technology Fee, and certain services that XPS provides, such as custom millwork, cabinets, tables, display cases, engraved wood signs, point of sale displays, custom acrylic panels, and other similar products, neither we nor any of our affiliates are an Approved Supplier for any items you are required to purchase in connection with your Studio as part of our standard Franchise offering; and (ii) none of our officers own an interest in any of our Approved Suppliers other than us.
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, franchisees are required to obtain insurance coverage from approved suppliers. Item 8 lists insurance coverage as one of the items that franchisees must purchase from Bft's approved suppliers. This requirement is subject to applicable law where the studio is located.
Bft franchisees must obtain and maintain required insurance coverages at their sole expense, as prescribed in the Franchise Agreement and/or the Learning Management System. Bft may change the required coverages or policies with thirty days' written notice, or sooner if there is a health/safety or infringement-related issue. The specifications for these coverages may vary based on the studio's size and customary business practices in the area.
As of the date of the Disclosure Document, typical insurance coverages include Commercial General Liability, Automobile Liability, Workers Compensation, Property insurance, and Employment Practices Liability. Specific limits for these coverages are detailed in Item 8, such as Commercial General Liability and Employment Practices Liability insurance with limits of not less than $1,000,000. The insurance policies must be written by a licensed insurance company in the state where the studio operates, with at least an "A" Rating Classification as indicated in A.M. Best's Key Rating Guide. Bft, Assetco, and their subsidiaries/affiliates must be included as Additional Insureds on the Studio's Commercial General Liability policy.