Can Dog Haus change the insurance requirements during the term of the Franchise Agreement?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
Avocado Association and $1,000 in rebates from McCain Foods, all of which were contributed to the Marketing, Creative & Technology Fund.
Insurance.
You must obtain and maintain throughout the term of your Franchise Agreement the types and amounts of insurance required by us and you must provide us with proof of coverage and Certificates of Insurance for all policies of insurance. You must obtain workers' compensation insurance with limits in compliance with your state law and employer's liability insurance with $1,000,000 combined single limit coverage, as well as any other insurance that may be required by statute or rule of the state in which your Franchised Restaurant is located or operated. Additionally, you must obtain: (i) comprehensive general liability insurance and product liability insurance with limits of $1,000,000 per occurrence and $2,000,000 aggregate coverage including the following: broad form contractual liability and personal injury coverage (employee and contractual inclusion deleted) insuring us and you against all claims, suits, obligations, liabilities and damages, including attorneys' fees, for actual or alleged personal injuries or property damage relating to the Franchised Restaurant business, provided that the required amounts may be modified periodically by us to reflect inflation or future experience with claims; (ii) automobile liability insurance on company vehicles, including owned, hired and non-owned vehicle coverage, with a combined single limit of at least $1,000,000; (iii) loss of income insurance (in an amount sufficient to cover the continuing license fee and other fees due under the Franchise Agreement for a period of at least 12 months); (iv) rental value insurance (in an amount sufficient to cover the rents and other fees due the landlord and/or merchants' association under the lease, if any, during any period of business interruption or inability to operate the Franchised Restaurant) or any greater amounts of insurance as required by the lease for the Franchised Restaurant's premises; (v) employment practices liability insurance; and (vi) additional insurance and types of coverage as required by the terms of any lease for the Franchised Restaurant premises, including an umbrella policy with limits of $1,000,000 to $3,000,000. We reserve the right to change our insurance requirements during the term of your Franchise Agreement, including the types of coverage and the amounts of coverage, and you must comply with those changes. If you do not obtain any insurance as required, we
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 31–36)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, Dog Haus does reserve the right to modify insurance requirements during the term of the Franchise Agreement. Franchisees must obtain and maintain specific types and amounts of insurance throughout the term, providing proof of coverage to Dog Haus.
The required insurance includes worker's compensation, employer's liability insurance with $1,000,000 combined single limit coverage, comprehensive general liability insurance and product liability insurance with limits of $1,000,000 per occurrence and $2,000,000 aggregate coverage, automobile liability insurance with a combined single limit of at least $1,000,000, loss of income insurance, rental value insurance, employment practices liability insurance, and additional insurance as required by the lease for the Franchised Restaurant premises, including an umbrella policy with limits of $1,000,000 to $3,000,000.
Dog Haus can change these insurance requirements, including the types and amounts of coverage. Franchisees must comply with these changes. If a franchisee fails to obtain the required insurance, Dog Haus has the right, but not the obligation, to purchase insurance on the franchisee's behalf, and the franchisee must reimburse Dog Haus for these costs. This clause allows Dog Haus to adapt to changing market conditions, legal requirements, or specific claims experience, but it also places the onus on the franchisee to stay compliant with potentially evolving insurance needs.