Who must the Canine Dimensions franchisee's insurance policy protect?
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's insurance policy must protect both the franchisee and Canine Dimensions. This protection extends to their respective officers, directors, shareholders, partners, and employees.
Specifically, the policy must guard against any demand or claim related to personal injury, death, property damage, or any loss, liability, or expense that arises from or occurs in connection with the franchised business. This requirement ensures that both the franchisee and Canine Dimensions are shielded from potential financial risks associated with the business's operations.
The insurance policy must include an endorsement that names Canine Dimensions and its officers, directors, shareholders, partners, and employees as "additional named insureds," not merely "additional insureds." This distinction broadens the scope of coverage to include Canine Dimensions' negligence, errors, and omissions, and it cannot be limited to vicarious liability. Furthermore, the insurance provided to these additional insureds must act as the primary insurance and not rely on any other insurance or self-insurance available to Canine Dimensions Franchising, LLC. This ensures that Canine Dimensions' coverage is prioritized in the event of a claim.