Besides the franchisee, who else must Dog Haus insurance policies name as an additional insured?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
Each policy shall: (i) be written by insurers licensed and admitted to write coverage in the jurisdiction in which the Franchised Restaurant is located and with a rating of "A" or better as set forth in the most recent edition of Best's Key Rating Guide; (ii) name Franchisor as an additional insured; and (iii) comply with the requirements prescribed by Franchisor at the time the policies are obtained.
All public liability and property damage policies shall contain a provision that Franchisor and its Affiliates, although named as an additional insured, shall nevertheless be entitled to recover under the policies on any loss occasioned to Franchisor, or its Affiliates, partners, shareholders, directors, agents, or employees by reason of the negligence of Franchisee or its partners, shareholders, directors, agents, or employees.
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, the franchisee is required to name Dog Haus as an additional insured on their insurance policies.
This requirement means that Dog Haus, in addition to the franchisee, will be protected under the franchisee's insurance policies. This is a common practice in franchising, as it provides an added layer of security for the franchisor against potential liabilities arising from the franchisee's operations. By being named as an additional insured, Dog Haus can directly file claims under the franchisee's policies if they incur losses due to the franchisee's negligence or actions.
Furthermore, all public liability and property damage policies must contain a provision that Dog Haus and its Affiliates, although named as an additional insured, can recover under the policies for any loss caused by the negligence of the franchisee or their partners, shareholders, directors, agents, or employees. This ensures that Dog Haus is entitled to recover losses due to the franchisee's actions, even with the additional insured status. Franchisees should understand that this requirement is in place to protect Dog Haus from potential liabilities arising from the franchisee's business operations.