Which article in the Canine Dimensions franchise agreement addresses the franchisee's obligations regarding insurance?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
12. INSURANCE
12.1 Requirement
Franchisee must procure, no later than fifteen (15) days prior to the commencement of operations of the Franchised Business, and shall maintain in full force and effect at all times during the Term, at Franchisee's expense, an insurance policy or policies protecting Franchisee and Franchisor, and their respective officers, directors, shareholders, partners, and employees, against any demand or claim with respect to personal injury, death, or property damage, or any loss, liability, or expense whatsoever arising or occurring upon or in connection with the Franchised Business. The insurance policy(ies) must contain an endorsement to Franchisee's policy naming Franchisor and its officers, directors, shareholders, partners and employees shall be named as "additional named insureds" and not "additional insureds" in the broadest form, extending to Franchisor's negligence and errors and omissions, and cannot be limited to vicarious liability. The insurance afforded to additional insureds must apply as primary insurance and not contribute to any insurance or self-insurance available to Canine Dimensions Franchising, LLC.
12.2 Minimum Coverage
Such policy or policies shall be written by an insurance company satisfactory to Franchisor in accordance with standards and specifications set forth in the Manual or otherwise in writing, and shall include, at a mini
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 17–18)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, Article 12 of the franchise agreement, titled "INSURANCE," outlines the franchisee's insurance obligations. Specifically, section 12.1, "Requirement," states that the franchisee must obtain and maintain insurance policies at their own expense, no later than fifteen (15) days before starting operations. These policies must protect both the franchisee and Canine Dimensions, including their respective officers, directors, shareholders, partners, and employees, against any claims related to personal injury, death, property damage, loss, liability, or expense occurring in connection with the franchised business.
The insurance policies must include an endorsement naming Canine Dimensions and its related parties as "additional named insureds" rather than "additional insureds," ensuring the broadest form of coverage, including negligence and errors and omissions. This coverage cannot be limited to vicarious liability and must act as primary insurance, not contributing to any other insurance available to Canine Dimensions Franchising, LLC.
Section 12.2, "Minimum Coverage," specifies that the insurance policies must be written by an insurance company satisfactory to Canine Dimensions, following the standards and specifications detailed in the Manual or provided in writing. This ensures that the franchisee maintains adequate and appropriate insurance coverage to protect both their business and Canine Dimensions from potential liabilities.