What are the minimum coverage limits required for glass 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 glass coverage. The minimum coverage limit for glass is $25,000. This insurance must be written on a special causes of loss coverage form and cover the replacement cost of the studio's business personal property, including furniture, fixtures, equipment, and leasehold improvements.
In addition to glass coverage, the property insurance must also include signage coverage with a minimum limit of $10,000 and business interruption/extra expense coverage for at least twelve months of rent. This ensures that the Bft studio can recover from potential losses or damages to its property and continue operations with minimal disruption.
It is important to note that Bft reserves the right to modify these insurance requirements based on industry standards, market conditions, or landlord requirements. Franchisees are obligated to revise their coverage within 60 days of receiving notice from Bft. Furthermore, all insurance policies must be written by a company licensed in the state where the studio operates and have an "A" Rating Classification as indicated in A.M. Best's Key Rating Guide.