Who must be named as additional insureds on the All Dogs Unleashed franchisee's insurance policies?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
11.2. Insurance Obligations.
- 11.2.1. You shall maintain in full force and effect at all times during the term of this Agreement, at your expense, an insurance policy or policies protecting you, Franchisor and its Affiliates, and their respective officers, shareholders, directors, members, managers, agents, and employees, against any demand or claim with respect to personal and bodily injury, death, or property damage, or any loss, liability, or expense arising or occurring upon or in connection with the operation of the Franchised Business.
- 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 All Dogs Unleashed's 2025 Franchise Disclosure Document, franchisees are required to maintain insurance policies that protect themselves, All Dogs Unleashed, and its affiliates. These policies must name All Dogs Unleashed and its Affiliates, and their respective officers, shareholders, directors, managers, members, agents, and employees as additional named insureds on a primary non-contributory basis. This means that the insurance coverage provided to All Dogs Unleashed will not be secondary to any other insurance they may have.
This requirement ensures that All Dogs Unleashed is protected from potential liabilities arising from the franchisee's business operations. 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 All Dogs Unleashed). This specific endorsement ensures that the coverage is tailored to the franchisor-franchisee relationship.
All Dogs Unleashed retains the right to modify the minimum insurance coverage requirements, potentially increasing them to reflect inflation or changing market conditions. Franchisees are also obligated to ensure that their insurers waive their rights of subrogation against All Dogs Unleashed, preventing the insurance company from pursuing claims against the franchisor in the event of a loss. Franchisees must provide evidence of this waiver to All Dogs Unleashed.
In the franchise industry, it is a common practice for franchisors to require franchisees to maintain insurance coverage that includes the franchisor as an additional insured. This protects the franchisor's interests and helps to mitigate potential risks associated with the franchise operation. Franchisees should carefully review the insurance requirements outlined in the Franchise Agreement and ensure that they obtain the necessary coverage to comply with these obligations.