What A.M. Best's rating must the insurers used by Bhc franchisees 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. This requirement applies to comprehensive general liability insurance, automobile insurance, and any other insurance legally mandated for the franchisee's business operations, such as workers' compensation. The insurance company 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 must be in effect by the opening date of the franchise and maintained throughout the term of the Franchise Agreement. The policy coverage requirements, limitations, and other specific terms related to insurance are detailed in Bhc's Operations Manual.

Furthermore, all insurance policies held by the franchisee must include an endorsement that names Bhc and the Owner of the Marks, along with their affiliated companies, shareholders, members, managers, directors, officers, employees, and agents, as additional insured parties. The franchisee's insurance coverage will be the primary coverage for these additional insured parties. This means that the franchisee's insurance will be used first before any insurance or self-insurance maintained by Bhc or related parties. Failure to maintain the required insurance coverage constitutes a material breach of the Franchise Agreement.