What is the minimum General Aggregate limit required for Commercial General Liability insurance per Bft studio?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
under this Agreement.
Notwithstanding anything to the contrary in this Agreement, Franchisee agrees that Franchisor does not control or own any of the following Personal Information (collectively, the "Restricted Data"): (a) any Personal Information of employees, officers, contractors, owners or other personnel of Franchisee, its affiliates, or the Studio; (b) such other Personal Information as Franchisor may from time to time expressly designate as Restricted Data; and/or (c) any other Personal Information to which Franchisor does not have access. Regardless of any guidance Franchisor may provide generally and/or any specifications that Franchisor may establish for Personal Information, Franchisee has sole and exclusive responsibility for all Restricted Data, including establishing protections and safeguards for such Restricted Data.
10.5 Insurance.
- A. Prior to the Studio's Soft Opening and throughout the entire Term, Franchisee will keep in force at Franchisee's own expense and by advance payment of the premium, all insurance coverages required by applicable law, and that it believes are appropriate for its own protection; Franchisee must, at a minimum, maintain the minimum insurance coverages and coverage amounts specified in the Learning Management System from time to time, which as of the Effective Date are as follows:
- (1) Commercial General Liability insurance covering Franchisee's day-to-day business operations and premises liability exposures with limits not less than the following:
Required Coverage Minimum Limits of Coverage
Each Occurrence: $1,000,000
General Aggregate: $5,000,000 (per Studio)
Products/Completed Operations Aggregate: $5,000,000 Personal and Advertising Injury: $1,000,000 Participant Legal Liability: $1,000,000 Professional Liability: $1,000,000 Damage to Rented Premises (per occurrence): $1,000,000 Employee Benefits Liability (per employee): $1,000,000 Employee 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 injury, premises liability, third party property damage and bodily injury liability (including death).
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 Commercial General Liability insurance with a minimum General Aggregate limit of $5,000,000 per studio. This insurance coverage is intended to cover the franchisee's day-to-day business operations and premises liability exposures.
In addition to the General Aggregate limit, the Commercial General Liability insurance must also include specific coverage amounts for other potential liabilities. These include $1,000,000 for Each Occurrence, $5,000,000 for Products/Completed Operations Aggregate, $1,000,000 for Personal and Advertising Injury, $1,000,000 for Participant Legal Liability, $1,000,000 for Professional Liability, $1,000,000 for Damage to Rented Premises (per occurrence), $1,000,000 for Employee Benefits Liability (per employee), $2,000,000 for Employee Benefits Liability (aggregate), and $5,000 for Medical Expense (any one person). The policy must also include coverage for Sexual Abuse and Molestation.
Bft franchisees must ensure that their insurance policies are written by a licensed insurance company in the state where they operate their studio, and the insurance company must have at least an "A" Rating Classification as indicated in A.M. Best's Key Rating Guide. Bft also retains the right to modify the insurance requirements, including coverage amounts, deductibles, and carrier ratings, based on industry standards, market conditions, or landlord requirements. Franchisees are required to comply with these changes within 60 days of receiving notice from Bft.