Does Bft's own insurance coverage limit a franchisee's obligation to maintain their own insurance?

According to Bft's 2025 Franchise Disclosure Document, a franchisee's obligation to obtain and maintain insurance is not limited by any insurance that Bft may maintain. The franchisee is still responsible for their own insurance coverage and is liable under the indemnity provisions outlined in the franchise agreement.

Bft requires franchisees to secure and maintain specific insurance coverages throughout the term of the agreement. These include Commercial General Liability insurance with a $1,000,000 limit for each occurrence and a $5,000,000 general aggregate (per Studio), Automobile Liability insurance (if vehicles are used), Workers Compensation insurance, Property insurance, and Employment Practices Liability insurance with a $1,000,000 limit per claim.

Franchisees must ensure that all insurance policies are written by a licensed insurance company with at least an “A” Rating Classification as indicated in A.M. Best's Key Rating Guide. Bft also reserves the right to modify insurance requirements based on industry standards, market conditions, or landlord requirements, and can designate or require pre-approval of insurance providers. Franchisees must provide Bft with certificates of coverage annually, and failure to maintain the required insurance can lead to immediate termination of the franchise agreement.