What is the required action for a Canine Dimensions franchisee regarding insurance policy expiration?
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, franchisees must maintain continuous insurance coverage throughout the term of their agreement. Specifically, a franchisee must procure the required insurance policies no later than fifteen (15) days before commencing operations and ensure these policies remain in full force and effect for the entire duration of the franchise term.
This requirement means a Canine Dimensions franchisee must proactively manage their insurance policies to prevent any lapse in coverage. This includes monitoring policy expiration dates and renewing or replacing policies well in advance of their termination. Failing to maintain continuous coverage could result in a breach of the franchise agreement, potentially leading to penalties or even termination of the franchise.
The insurance policies must protect both the franchisee and Canine Dimensions against claims related to personal injury, death, property damage, or any loss, liability, or expense connected to the franchised business. Additionally, Canine Dimensions and its officers, directors, shareholders, partners, and employees must be named as "additional named insureds" on the franchisee's policy, ensuring the franchisor's protection extends to their negligence and errors and omissions. This is a common practice in franchising to protect the franchisor from liabilities arising from the franchisee's operations.