Who must be named as additional insureds on the All Dogs Unleashed franchisee's insurance policy?
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.
- 11.2.3. Franchisor may unilaterally modify the insurance minimum coverage requirements which
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, its affiliates, and their respective officers, shareholders, directors, members, managers, agents, and employees. These parties must be named as additional insureds on a primary non-contributory basis.
This requirement means that if a claim arises related to the operation of the All Dogs Unleashed franchised business, the insurance policy must cover All Dogs Unleashed and its related parties in addition to the franchisee. The coverage must be primary, meaning it pays out before any other insurance policies that All Dogs Unleashed or its affiliates may have. The non-contributory basis ensures that the All Dogs Unleashed's insurance will not be required to contribute to the payment of a claim if the franchisee's policy is in effect.
Furthermore, 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 meets All Dogs Unleashed's requirements for protecting its interests and limiting its liability related to the franchisee's operations. All Dogs Unleashed may also modify the minimum coverage requirements, potentially increasing them to reflect inflation or market conditions.