What A.M. Best's rating must the insurers providing coverage for a Bhc franchise have?

According to Bhc's 2025 Franchise Disclosure Document, franchisees must secure insurance policies from insurers with a minimum A.M. Best's rating of A: VII. These insurers must also be authorized to conduct business in the state where the Bhc restaurant is located. However, Bhc may provide written approval for exceptions to this requirement.

This insurance coverage, including comprehensive general liability and automobile insurance, is mandatory from the franchise's opening date and must be maintained throughout the term of the Franchise Agreement. Additionally, franchisees must carry any other legally required insurance, such as workers' compensation, and any other insurance deemed reasonably prudent for their type of business. The specific policy coverage requirements, limitations, and other terms related to insurance are detailed in Bhc's Operations Manual.

The insurance policies obtained by the franchisee must include an endorsement that names Bhc, the Owner of the Marks, and their affiliated companies, along with their respective shareholders, members, managers, directors, officers, employees, and agents, as additional insureds. This ensures that Bhc and related parties are protected under the franchisee's insurance coverage. The franchisee's insurance coverage will be the primary coverage for Bhc and related parties, while any insurance maintained by Bhc will be considered excess coverage.