How much notice will a Bft franchisee receive if insurance requirements are changed?

According to Bft's 2025 Franchise Disclosure Document, Bft franchisees will receive sixty (60) days' notice if Bft decides to upgrade or lower insurance requirements. These changes can include policy limits, deductibles, scope of coverage, or the rating of insurance carriers. These changes would be in response to current industry standards, market conditions, and/or landlord requirements.

It is important to note that the franchisee is responsible for ensuring their insurance coverage complies with Bft's requirements. Failure to maintain the required insurance coverage can result in immediate termination of the Franchise Agreement. The franchisee is also responsible for any losses, claims, or causes of action arising after the lapse or termination of insurance coverage and must hold Bft harmless from such events.

Bft also has the right to designate or require pre-approval of the insurance provider used by the franchisee. Additionally, Bft, including its parents, affiliates, and subsidiaries, can be included as additional insureds on the franchisee's insurance policies, such as Commercial General Liability and Umbrella Excess Liability insurance. All insurance policies must waive subrogation rights against Bft and require thirty (30) days' notice to Bft before any cancellation or material change to the policy.

These stipulations are fairly standard in franchise agreements, as they protect the franchisor's brand and reputation. Franchisees should ensure they understand and can comply with these insurance requirements to avoid potential penalties or termination of their franchise agreement.