When is the Bft Insurance Policies fee payable?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Insurance Policies 5 | Amount of unpaid premium | As agreed | Payable only if you fail to maintain required insurance coverage and we elect to obtain coverage for you. |
Source: Item 6 — OTHER FEES (FDD pages 21–26)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the Insurance Policies fee, which is the amount of the unpaid premium, is due 'as agreed.' This fee is payable only if a franchisee fails to maintain the required insurance coverage, and Bft elects to obtain the coverage for them.
This means that a Bft franchisee will only be charged this fee if they do not maintain the insurance coverage required by Bft. If the franchisee allows their insurance to lapse or otherwise fails to maintain the required coverage, Bft has the option to obtain the necessary insurance on behalf of the franchisee. In this case, the franchisee would be responsible for reimbursing Bft for the cost of the premium.
It is important for prospective Bft franchisees to understand the minimum insurance requirements outlined in Item 8 of the FDD and to ensure they maintain adequate coverage to avoid this fee. The due date for the insurance policies fee is determined by agreement, implying that Bft and the franchisee will agree on a payment schedule if Bft has to secure insurance on the franchisee's behalf.