On what basis must the additional insureds be named on the All Dogs Unleashed franchisee's insurance policies?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.2.2. Such policy or policies shall: (a) be written by insurer(s) licensed and admitted to write coverage in the state in which the Franchised Business is located and with a rating of "A" or better as set forth in the most recent edition of Best's Key Rating Guide; (b) name Franchisor and its Affiliates, and their respective officers, shareholders, directors, managers, members, agents, and employees as additional named insureds on a primary non-contributory basis, (c) the additional insured coverage must be provided on an Additional Insured Grantor of Franchise Endorsement per form CG2029 (or an endorsement form with comparable wording acceptable to Franchisor); and (d) comply with Franchisor's written requirements at the time such policies are obtained, and provide at least the types and minimum amounts of coverage specified in the Manuals.
Source: Item 23 — RECEIPTS (FDD pages 49–158)
What This Means (2025 FDD)
According to the 2025 All Dogs Unleashed Franchise Disclosure Document, franchisees must include All Dogs Unleashed and its affiliates, along with their respective officers, shareholders, directors, members, managers, agents, and employees, as additional named insureds on their insurance policies. This inclusion must be on a primary non-contributory basis.
Furthermore, the additional insured coverage must be provided through an Additional Insured Grantor of Franchise Endorsement, specifically per form CG2029, or an endorsement form with comparable wording that is acceptable to All Dogs Unleashed. This ensures that the insurance coverage extends to protect All Dogs Unleashed from potential liabilities arising from the franchisee's operations.
This requirement is typical in franchising, as it protects the franchisor's brand and assets from potential lawsuits or claims related to the franchisee's business. The franchisee is responsible for maintaining these insurance policies at their own expense throughout the term of the franchise agreement. All Dogs Unleashed also retains the right to modify the minimum coverage requirements, potentially increasing them to reflect inflation or changing market conditions.