What is the deadline for a Canine Dimensions franchisee to procure the required insurance policy?
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's 2025 Franchise Disclosure Document, a franchisee must procure the required insurance policy no later than fifteen (15) days prior to the commencement of operations of the Franchised Business. This insurance must remain in full force and effect at all times during the term of the franchise agreement. The policy must protect both the franchisee and Canine Dimensions, including their respective officers, directors, shareholders, partners, and employees, against claims related to personal injury, death, property damage, loss, liability, or expense occurring in connection with the franchised business.
The insurance policy must include an endorsement naming Canine Dimensions and its related parties as "additional named insureds" with broad coverage, extending to Canine Dimensions's negligence, errors, and omissions. This coverage cannot be limited to vicarious liability. Furthermore, the insurance provided to these additional insureds must be primary and not require contribution from any other insurance or self-insurance available to Canine Dimensions Franchising, LLC.
In practical terms, this means a prospective Canine Dimensions franchisee needs to secure adequate insurance well in advance of opening their business. Failure to do so could delay the launch of their franchise and potentially violate the franchise agreement. Additionally, the franchisee must provide Certificates of Insurance to Canine Dimensions at least thirty (30) days prior to the time any insurance is first required to be carried by Franchisee, and thereafter at least thirty (30) days prior to the expiration of any such policy. This allows Canine Dimensions to verify that the franchisee has the required coverage and to take action if the franchisee fails to maintain it.