When must an All Dogs Unleashed franchisee deliver a certificate of insurance to the Franchisor?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.2.7.
At least 10 days prior to the time you are first required to carry insurance, and thereafter at least 30 days prior to the expiration of any policy, you shall deliver to Franchisor certificate of insurance evidencing your compliance with this Article 11.
Each certificate of insurance shall expressly provide that no less than 30 days' prior written notice shall be given to Franchisor in the event of material alteration to or cancellation or non-renewal of the coverages evidenced by such certificates.
- 11.2.8.
If you fail to procure or maintain these minimum insurance requirements, Franchisor or its designee shall have the right and authority (but not the obligation) to procure such insurance on your behalf.
Such right shall be in addition to and not in lieu of any other rights or remedies available to Franchisor.
If this occurs, you shall reimburse Franchisor the cost of the premium upon demand, plus an administrative fee equal to 15% of the cost of such premiums.
Source: Item 23 — RECEIPTS (FDD pages 49–158)
What This Means (2025 FDD)
According to All Dogs Unleashed's 2025 Franchise Disclosure Document, a franchisee must provide a certificate of insurance to the Franchisor at two specific times. First, the franchisee must deliver the certificate at least 10 days before they are initially required to carry insurance. Second, the franchisee must provide an updated certificate at least 30 days before the expiration of any existing policy.
This requirement ensures that All Dogs Unleashed has ample time to verify that franchisees maintain continuous and adequate insurance coverage. The certificate serves as proof of compliance with the insurance requirements outlined in the Franchise Agreement. This allows the franchisor to confirm that the franchisee has obtained the necessary coverage, protecting both the franchisee and the franchisor from potential liabilities.
The certificate of insurance must also include a provision ensuring that the Franchisor receives at least 30 days' written notice if there are any significant changes, cancellations, or non-renewals to the insurance coverage. This advance notice allows All Dogs Unleashed to take appropriate action to ensure continuous coverage, potentially procuring insurance on the franchisee's behalf if necessary, although they are not obligated to do so. If All Dogs Unleashed does obtain insurance for the franchisee, the franchisee is responsible for reimbursing the cost of the premium plus an administrative fee equal to 15% of the premium cost.
Maintaining adequate insurance is a standard requirement in franchising, designed to protect both the franchisee's business and the overall brand. The specific timelines provided by All Dogs Unleashed—10 days before initial coverage and 30 days before policy expiration—are in line with common industry practices, allowing sufficient time for verification and renewal processes.