What is the maximum retention allowed for Bft's Employment Practices Liability insurance?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
rage with limits not less than $10,000, and business interruption/extra expense coverage with limits not less than 12 months of rent.
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- Employment Practices Liability insurance with limits of not less than $1,000,000 per claim in the aggregate, with a retention not larger than $25,000, providing defense and coverage for claims brought by any of your employees or other
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 maintain Employment Practices Liability insurance with specific coverage limits and retention levels. This insurance is designed to protect the franchisee from claims brought by employees or other personnel alleging employment-related issues.
The required Employment Practices Liability insurance must have a limit of not less than $1,000,000 per claim in the aggregate. The policy's retention, which is the amount the franchisee must pay out-of-pocket before the insurance coverage kicks in, cannot be larger than $25,000. The insurance policy must provide defense and coverage for employment-related torts and include Third Party Employment Practices Liability coverage.
Bft mandates that these insurance policies be written by an insurance company licensed in the state where the studio operates. Furthermore, the insurance company must have at least an "A" Rating Classification as indicated in A.M. Best's Key Rating Guide. Additionally, Bft, Assetco, and their subsidiaries/affiliates must be included as Additional Insureds on the studio's Commercial General Liability policy. This ensures that the franchisee has adequate coverage while also protecting Bft's interests.