Who bears the expense of the insurance policy required for a Canine Dimensions franchise?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, the franchisee is responsible for the expense of the required insurance policy. The franchisee must obtain and maintain this insurance policy, at their own expense, no later than 15 days before starting operations.
The insurance policy must protect both the franchisee and Canine Dimensions, including their respective officers, directors, shareholders, partners, and employees. This coverage extends to claims related to personal injury, death, property damage, or any loss, liability, or expense connected to the franchised business.
The policy must name Canine Dimensions and its related parties as "additional named insureds," covering their negligence, errors, and omissions. The insurance provided to these additional insureds must be primary and not rely on any other insurance available to Canine Dimensions Franchising, LLC. This ensures that the franchisee's insurance bears the initial responsibility for covering potential claims.