What are the minimum employer's liability limits required within the workers compensation insurance for a Bft franchise?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
loyee Benefits Liability (aggregate): $2,000,000 Medical Expense (any one person): $5,000
Sexual Abuse and Molestation: Included (not excluded)
Such insurance shall include coverage for contractual liability (for liability assumed under an "insured contract"), products-completed operations, personal and advertising inj
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, franchisees are required to maintain workers compensation insurance that includes employer's liability coverage. This coverage must have limits of not less than $500,000 for each accident, $500,000 for each employee in the event of a disease, and $500,000 as the policy limit for disease.
This requirement ensures that Bft franchisees have adequate financial protection in the event of employee work-related injuries or illnesses. The specified limits are designed to cover potential costs associated with medical expenses, lost wages, and legal liabilities arising from such incidents. Franchisees must secure this insurance coverage to comply with Bft's standards and legal requirements.
It is important for prospective Bft franchisees to factor in the cost of this insurance coverage when assessing the overall investment and operational expenses of the franchise. Failing to maintain the required insurance coverage could lead to termination of the franchise agreement, making it a critical aspect of compliance for all franchisees.