Does a Canine Dimensions franchisee's compliance with insurance requirements relieve them of liability under the indemnity provisions in Section 18.3 of the Franchise Agreement?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee's obligation to obtain and maintain the foregoing policy or policies in the amounts specified shall not be limited in any way by reason of any insurance which may be maintained by Franchisor, nor shall Franchisee's performance of that obligation relieve it of liability under the indemnity provisions set forth in Section 18.3 of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, a franchisee's compliance with insurance requirements does not relieve them of liability under the indemnity provisions set forth in Section 18.3 of the Franchise Agreement.
Specifically, Section 12.3, titled "Effect of Insurance Coverage," clarifies that the franchisee's obligation to obtain and maintain insurance policies in the specified amounts is not limited by any insurance maintained by Canine Dimensions. This means that even if Canine Dimensions has its own insurance coverage, the franchisee's insurance obligations remain in full effect.
Furthermore, the FDD explicitly states that the franchisee's performance of their insurance obligations does not relieve them of liability under the indemnity provisions in Section 18.3 of the Franchise Agreement. Therefore, even if a franchisee meets all insurance requirements, they are still responsible for indemnifying Canine Dimensions as outlined in Section 18.3, which covers a broad range of potential losses and expenses arising from the operation of the franchised business.