Does Bft require Assetco and its subsidiaries/affiliates to be included as Additional Insureds on the Studio's Commercial General Liability policy?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Your policies must be written by an insurance company licensed in the state in which you operate the Studio, and the insurance company must have at least an "A" Rating Classification as indicated in A.M. Best's Key Rating Guide. We, Assetco and subsidiaries/affiliates shall be included as Additional Insureds on the Studio's Commercial General Liability policy.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 32–36)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, Bft franchisees are required to include Assetco and its subsidiaries/affiliates as additional insureds on their Commercial General Liability insurance policy.
This requirement means that Assetco and its related entities are protected under the franchisee's insurance policy for claims arising from the franchisee's business operations. This is a fairly standard practice in franchising, as it provides an additional layer of protection for the franchisor against potential liabilities related to the franchisee's business.
Bft franchisees must ensure that their Commercial General Liability policy includes this additional insured endorsement to comply with Bft's insurance requirements. Failure to do so could result in a breach of the franchise agreement and potential penalties.