Under what conditions can Bft be included as an additional insured on a franchisee's insurance policies?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
At Franchisor's designation, Franchisor, as well as its parents, affiliates, and subsidiaries, shall be included as additional insureds on the Studio's insurance policies, including without limitation, the Studio's Commercial General Liability and any Umbrella Excess Liability insurance policies.
All insurance policies must waive any subrogation rights or other rights to assert a claim back against Franchisor and shall contain a clause requiring notice to Franchisor thirty (30) days in advance of any cancellation or material change or cancellation to any such policy.
Franchisee shall give Franchisor certificates of coverage at least annually.
Failure to obtain or the lapse of any of the required insurance coverage shall be grounds for the immediate termination of this Agreement pursuant to Section 15.1, and Franchisee agrees that any losses, claims or causes of action arising after the lapse of or termination of insurance coverage will be the sole responsibility of Franchisee and that Franchisee will hold Franchisor harmless from all such losses, claims and/or causes of action.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, Bft, including its parents, affiliates, and subsidiaries, can be included as additional insureds on a franchisee's insurance policies at Bft's designation. This inclusion extends to the franchisee's Commercial General Liability and any Umbrella Excess Liability insurance policies.
This requirement means that as a Bft franchisee, you must ensure that your insurance policies can accommodate the addition of Bft and related entities as additional insureds. This protects Bft from potential liabilities arising from the operation of your studio. The franchisee is required to provide certificates of coverage to Bft annually.
Furthermore, all insurance policies must waive any subrogation rights or other rights to assert a claim against Bft. The policies must also include a clause requiring notification to Bft 30 days in advance of any cancellation or material change to the policy. Failure to obtain or maintain the required insurance coverage can result in immediate termination of the Franchise Agreement, making it crucial for franchisees to adhere to these insurance requirements.