Can Canine Dimensions require franchisees to obtain additional insurance coverage in the future?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
You currently are required to maintain the following insurance coverage:
- (1) comprehensive general liability coverage against claims for bodily and personal injury, death, and property damage caused by or occurring in conjunction with the operation of your Franchised Business or your conduct of business under the Franchise Agreement under one or more policies of insurance containing minimum liability coverage of $1,000,000 per occurrence and $2,000,000 aggregate, including product / completed operations insurance;
- (2) automobile liability (split limit) of $250,000 per person, $500,000 per accident, and $100,000 property damage for any vehicles used in the operation of the Franchised Business;
- (3) an umbrella liability insurance policy with minimum liability coverage of $2,000,000;
- (4) employer's liability of $1,000,000 per incident and Workers' Compensation or other employer's liability insurance as well as such other insurance as may be required by statute or rule in the state in which your Franchised Business is located;
- (5) professional liability insurance of $25,000 per incident; and
- (6) any other insurance that we may require in the future or that may be required according to the law or the terms of your lease.
You must maintain all required policies in force during the entire term of the Franchise Agreement and any renewal terms. We may periodically increase or decrease the amounts of coverage required under these insurance policies and require different or additional kinds of insurance at any time to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards, or other relevant changes in circumstances. Each insurance policy must name us (and, if we request, our directors, employees or shareholders) as additional insureds and must provide us with 30 days' advance written notice of any material modification, cancellation or expiration of the policy.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 14–17)
What This Means (2025 FDD)
According to Canine Dimensions's 2025 Franchise Disclosure Document, franchisees may be required to obtain additional insurance coverage in the future. Canine Dimensions states that franchisees must maintain specific insurance policies during the term of the Franchise Agreement. These include comprehensive general liability coverage with minimums of $1,000,000 per occurrence and $2,000,000 aggregate, automobile liability coverage, an umbrella liability insurance policy with $2,000,000 coverage, employer's liability of $1,000,000 per incident, and professional liability insurance of $25,000 per incident.
In addition to the listed coverage, Canine Dimensions retains the right to mandate "any other insurance that we may require in the future or that may be required according to the law or the terms of your lease." This provision allows Canine Dimensions to adapt insurance requirements as needed.
Canine Dimensions can also adjust the coverage amounts required under existing policies, and require different or additional kinds of insurance at any time to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards, or other relevant changes in circumstances. Franchisees must also name Canine Dimensions as an additional insured on their policies and provide 30 days' advance written notice of any material modification, cancellation, or expiration of the policy. This ensures that Canine Dimensions is protected and informed about any changes to the franchisee's insurance coverage.