Is Workers Compensation insurance required for a Chem-Dry franchise?

According to Chem-Dry's 2024 Franchise Disclosure Document, franchisees are required to obtain Workers Compensation insurance. The FDD specifies that franchisees "must also have Workers Compensation insurance based on statutory requirements." This means that the specific requirements for Workers Compensation coverage will depend on the laws of the state in which the franchise operates.

In addition to Workers Compensation insurance, Chem-Dry franchisees must also maintain minimum business liability coverage of $1,000,000 per occurrence and vehicle liability coverage of $100,000/$400,000/$75,000 (or $500,000 Combined Single Limit). Chem-Dry, its parents, and BFG National Accounts must be named as additional insureds on both the General Liability and Vehicle Liability insurance policies. Franchisees must provide Chem-Dry with a Certificate of Insurance for the business, vehicles, and workers compensation coverage within 30 days of signing the Franchise Agreement and annually thereafter.

It is important for prospective Chem-Dry franchisees to understand the specific Workers Compensation requirements in their state and to factor the cost of this insurance, along with the other required insurance coverages, into their business plan. Failing to maintain the required insurance coverage could result in a breach of the Franchise Agreement.