How should Canine Dimensions Franchising, LLC and its related parties be named on the franchisee's 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, franchisees are required to secure and maintain insurance policies that protect both the franchisee and Canine Dimensions, along with their respective officers, directors, shareholders, partners, and employees. These policies must be in effect no later than 15 days before the commencement of operations and must remain active throughout the term of the franchise agreement.
The insurance policy must include an endorsement that names Canine Dimensions and its officers, directors, shareholders, partners, and employees as "additional named insureds" rather than "additional insureds." This coverage must be in the broadest form, extending to Canine Dimensions's negligence, 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 other insurance or self-insurance available to Canine Dimensions Franchising, LLC. This means that in the event of a claim, the franchisee's insurance policy will be the first one used to cover the losses before any insurance or self-insurance that Canine Dimensions may have.