Who must be protected by the insurance policy maintained by an All Dogs Unleashed franchisee?
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
may include an increase to the minimum coverage requirements to reflect changes in inflation or as market conditions warrant.
- 11.2.4.
In connection with any and all insurance that you are required to maintain under Section 11.2, you and your insurers shall agree to waive their rights of subrogation against Franchisor, and you shall provide evidence of such waiver in accordance with Section 11.3.
- 11.2.5.
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 an insurance policy that protects several parties. This policy must cover the franchisee, All Dogs Unleashed and its affiliates, as well as their respective officers, shareholders, directors, members, managers, agents, and employees. The insurance must guard against any demand or claim related to personal and bodily injury, death, property damage, or any loss, liability, or expense arising from the operation of the All Dogs Unleashed franchised business.
This requirement ensures that multiple stakeholders are protected from potential liabilities and financial risks associated with the business. By including All Dogs Unleashed and its related parties in the insurance coverage, the franchisor mitigates its own risk exposure stemming from the franchisee's operations. This is a common practice in franchising, as the franchisor's brand and reputation could be impacted by incidents occurring at a franchised location.
The insurance policy must be written by insurers licensed and admitted to write coverage in the state where the franchised business is located, and the insurer must have a rating of "A" or better as per Best's Key Rating Guide. Furthermore, All Dogs Unleashed and its affiliates must be named as additional insureds on a primary non-contributory basis, using an Additional Insured Grantor of Franchise Endorsement form CG2029 or a comparable form acceptable to All Dogs Unleashed. The specific types and minimum amounts of coverage must comply with All Dogs Unleashed's written requirements detailed in the manuals, which All Dogs Unleashed can modify unilaterally to reflect changes in inflation or market conditions.
All Dogs Unleashed also requires that the franchisee and their insurers agree to waive their rights of subrogation against All Dogs Unleashed, providing evidence of this waiver as required. This comprehensive insurance requirement is designed to protect all involved parties and ensure the stability and security of the All Dogs Unleashed franchise system.