What is the automobile liability property damage coverage required for a Canine Dimensions franchise?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) automobile liability (split limit) of $250,000 per person, $500,000 per accident, and $100,000 property damage for any vehicles used in the operation of the Franchised Business;
- (3) an umbrella liability insurance policy with minimum liability coverage of $2,000,000;
- (4) employer's liability of $1,000,000 per incident and Workers' Compensation or other employer's liability insurance as well as such other insurance as may be required by statute or rule in the state in which your Franchised Business is located;
- (5) professional liability insurance of $25,000 per incident; and
- (6) any other insurance that we may require in the future or that may be required according to the law or the terms of your lease.
You must maintain all required policies in force during the entire term of the Franchise Agreement and any renewal terms.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 14–17)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, franchisees must maintain specific automobile liability insurance coverage. The required coverage includes split limits of $250,000 per person and $500,000 per accident, along with $100,000 for property damage for any vehicles used in operating the Canine Dimensions franchise. This insurance is essential to protect the franchisee and the company from potential financial liabilities resulting from vehicle-related incidents.
The insurance requirements are designed to mitigate risks associated with operating a mobile or transportation-dependent business. By setting minimum coverage levels, Canine Dimensions ensures that franchisees have adequate financial protection in case of accidents involving their vehicles. This coverage helps cover damages to other vehicles or property if the franchisee or their employees are at fault in an accident.
It is important to note that Canine Dimensions may periodically adjust these insurance requirements. The FDD states that the company can increase or decrease coverage amounts or require different types of insurance to reflect factors like inflation, new risks, changes in laws, or higher damage awards. Franchisees must stay informed of any changes to these requirements to remain compliant with the Franchise Agreement. Additionally, franchisees must name Canine Dimensions as an additional insured on their policies and provide 30 days' advance written notice of any policy modifications, cancellations, or expirations.