What is the minimum required 'Each Occurrence' limit for Commercial General Liability insurance that a Bft franchisee must maintain?
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 operatio
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, franchisees must maintain Commercial General Liability insurance with a minimum 'Each Occurrence' limit of $1,000,000. This insurance coverage is intended to cover the franchisee's day-to-day business operations and premises liability exposures.
In addition to the 'Each Occurrence' limit, Bft franchisees are also required to maintain other coverage limits under the Commercial General Liability insurance, including a General Aggregate of $5,000,000 per studio, Products/Completed Operations Aggregate of $5,000,000, Personal and Advertising Injury coverage of $1,000,000, Participant Legal Liability of $1,000,000, Professional Liability of $1,000,000, Damage to Rented Premises (per occurrence) of $1,000,000, Employee Benefits Liability (per employee) of $1,000,000, Employee Benefits Liability (aggregate) of $2,000,000, and Medical Expense (any one person) of $5,000. The policy must also include coverage for Sexual Abuse and Molestation, without exclusion.
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 retains the right to modify insurance requirements in response to industry standards, market conditions, or landlord requirements, and franchisees must comply with these changes within 60 days of notice. Furthermore, Bft, including its parents, affiliates, and subsidiaries, may be included as additional insureds on the franchisee's insurance policies. Franchisees should regularly provide certificates of coverage to Bft and be aware that failure to maintain the required insurance can lead to termination of the franchise agreement.