What minimum automobile liability insurance coverage is required for a Bft franchise, considering owned, hired, and non-owned vehicles?

According to the 2025 Bft Franchise Disclosure Document, franchisees must maintain automobile liability insurance covering the use, operation, or maintenance of any vehicle (owned, hired, or non-owned) used in connection with the franchise. The minimum coverage required is the compulsory amount mandated by the franchisee's state. This requirement is applicable only if owned, leased, or hired/rented vehicles are used in the operation of the Bft franchise.

This means that a Bft franchisee needs to check their state's specific requirements for automobile liability insurance and ensure their policy meets those minimums. The coverage must extend to all vehicles used for the business, regardless of whether the franchisee owns them, leases them, or hires them. This is a standard practice in franchising, as it protects both the franchisee and the franchisor from potential liabilities arising from vehicle-related incidents.

It is important for prospective Bft franchisees to understand their state's insurance laws and factor the cost of adequate automobile liability coverage into their overall business expenses. Failing to maintain the required insurance could lead to a breach of the franchise agreement and potential termination. Franchisees should consult with an insurance professional to determine the appropriate level of coverage for their specific circumstances, considering factors such as the number of vehicles used and the nature of their operations.