What are the minimum coverage limits for glass and signage coverage under the property insurance for a Bft franchise?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
ry, premises liability, third party property damage and bodily injury liability (including death).
- (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, l
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, franchisees must maintain property insurance that includes specific coverage for glass and signage. This insurance must be written on a special causes of loss coverage form with limits not less than the current replacement cost of the Studio's business personal property, including furniture, fixtures, equipment, and leasehold improvements.
Specifically, the property insurance policy must include glass coverage with a minimum limit of $25,000 and signage coverage with a minimum limit of $10,000. Additionally, the policy should include business interruption/extra expense coverage with limits not less than twelve months of rent.
This requirement ensures that Bft franchisees have adequate financial protection in case of damage or loss to their studio's glass and signage, as well as coverage for business interruption expenses. Franchisees must secure this insurance prior to the studio's soft opening and maintain it throughout the entire term of the franchise agreement.