What are the minimum automobile liability insurance requirements for a Bft franchise regarding owned, hired, and non-owned vehicles?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) Automobile Liability insurance covering liability arising out of Franchisee's use, operation or maintenance of any auto (including owned, hired, and non-owned autos, trucks or other vehicles) in connection with its ownership and operation of the franchise, with limits not less than the minimum compulsory requirements in Franchisee's state. This requirement only applies to the extent that owned, leased or hired/rented vehicles are used in the operation of the franchise.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, franchisees must maintain automobile liability insurance. This insurance covers any liability arising from the use, operation, or maintenance of any vehicle, including owned, hired, and non-owned vehicles, used in connection with the franchise.
The minimum coverage limits must meet the compulsory requirements in 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.
It is important to note that Bft also requires other insurance coverages, such as Commercial General Liability, Workers Compensation, Property insurance, and Employment Practices Liability insurance. Franchisees should consult with an insurance professional to ensure they meet all of Bft's insurance requirements and maintain adequate coverage for their specific business operations and location.