When is the payment for Insurance Policies 5 due for a Bft franchise?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Insurance Policies 5 | Amount of unpaid premium | As agreed | Payable only if you fail to maintain required insurance coverage and we elect to obtain coverage for you. |
Source: Item 6 — OTHER FEES (FDD pages 21–26)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, payment for insurance policies is due 'as agreed.' Specifically, this fee, equivalent to the amount of the unpaid premium, becomes payable only if a franchisee fails to maintain the required insurance coverage, and Bft elects to obtain the coverage on their behalf.
This means a Bft franchisee is responsible for maintaining their own insurance coverage. If they fail to do so, Bft has the option to step in and secure the necessary coverage. In this scenario, the franchisee would then be responsible for reimbursing Bft for the cost of the insurance premium.
The due date for this reimbursement is not fixed but rather 'as agreed,' suggesting that Bft and the franchisee would need to come to an agreement on a payment schedule or terms. This could involve immediate payment or a payment plan, depending on the circumstances and the agreement reached. It is important to note that Item 8 of the FDD contains Bft's minimum insurance requirements.