Under what circumstances can Canine Dimensions change the insurance requirements for a Canine Dimensions franchise?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
You must obtain and maintain, at your own expense, such insurance coverage that we require from time to time. We may regulate the types, amounts, terms and conditions of insurance coverage required for your Franchised Business and standards for underwriters of policies providing required insurance coverage; our protection and rights under such policies as an additional named insured; required or impermissible insurance contract provisions; assignment of policy rights to us; periodic verification of insurance coverage that must be furnished to us; our right to obtain insurance coverage at your expense if you fail to obtain required coverage; our right to defend claims; and similar matters relating to insured and uninsured claims. We are not an approved supplier or the only approved supplier of the required insurance policies. 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;
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 14–17)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, Canine Dimensions has the authority to modify the insurance requirements for its franchisees under certain circumstances. Canine Dimensions may periodically increase or decrease the amounts of coverage required or mandate different or additional kinds of insurance. These changes can be made at any time during the franchise term or any renewal terms.
These adjustments to insurance requirements are typically driven by factors such as inflation, the identification of new risks associated with the business, changes in relevant laws or standards of liability, and increases in damage awards. These are common reasons for franchisors to adjust insurance requirements, as they reflect the evolving legal and economic landscape.
Canine Dimensions also requires that they (and potentially their directors, employees, or shareholders) are named as additional insureds on each policy. Furthermore, Canine Dimensions must receive 30 days' advance written notice of any material modification, cancellation, or expiration of the insurance policy. This ensures that Canine Dimensions is informed of any changes that could affect their liability coverage related to the franchisee's operations. If a franchisee fails to obtain the required insurance coverage, Canine Dimensions has the right to obtain the insurance coverage at the franchisee's expense and also has the right to defend claims.