How much advance notice is required to Bft for cancellation or material change to a franchisee's insurance policy?

According to Bft's 2025 Franchise Disclosure Document, Bft franchisees must ensure that their insurance policies include a clause requiring the insurance company to notify Bft 30 days in advance of any cancellation or material change to the policy. This requirement is designed to protect Bft's interests by ensuring they are aware of any potential lapse in coverage.

This notification requirement allows Bft to take necessary steps to ensure continuous coverage, potentially by requiring the franchisee to obtain a new policy or, in some cases, securing the insurance themselves and charging the franchisee for the cost. This is further supported by the clause that failure to obtain or the lapse of any of the required insurance coverage shall be grounds for immediate termination of the Franchise Agreement.

For a prospective franchisee, this means they need to verify that their insurance policies include this notification clause. Additionally, franchisees must provide Bft with certificates of coverage annually to demonstrate compliance. Failure to maintain the required insurance or provide timely notice of changes can lead to serious consequences, including termination of the franchise agreement, making it a critical aspect of compliance for Bft franchisees.