What are the minimum coverage limits per occurrence and in aggregate for comprehensive general liability and product liability insurance that a Dog Haus franchisee must maintain?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
including the following: broad form contractual liability and personal injury coverage (employee and contractual inclusion deleted) insuring Franchisor and Franchisee 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; (iv) 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; (v) loss of income insurance (in an amount sufficient to cover the all fees due to Franchisor under this Agreement for a period of at least twelve (12) months); (vi) rental value insurance in an amount
sufficient to cover the rents and other fees due the Landlord under the Lease 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 Location; (vii) employment practices liability insurance; and (viii)
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
Based on the 2025 Dog Haus Franchise Disclosure Document, the specific minimum coverage limits per occurrence and in aggregate for comprehensive general liability and product liability insurance are not explicitly detailed. However, the franchisee is required to maintain certain insurance coverages.
Dog Haus franchisees must secure and maintain various insurance policies, including comprehensive general liability insurance, product liability insurance, worker's compensation insurance, and automobile liability insurance. Additionally, they need to obtain "all-risk" or special-form property insurance sufficient to cover rents and fees during business interruptions, employment practices liability insurance, and any extra coverage mandated by their lease, potentially including an umbrella policy with limits ranging from $1,000,000 to $3,000,000.
The FDD specifies that Dog Haus retains the right to modify insurance requirements during the agreement term, encompassing both coverage types and amounts. Franchisees are obligated to adhere to these changes. Furthermore, all policies must be written by insurers licensed and admitted in the relevant jurisdiction with a rating of "A" or better, name Dog Haus as an additional insured, and meet any other requirements Dog Haus prescribes at the time the policies are obtained.
Given the absence of specific figures for general and product liability coverage, prospective Dog Haus franchisees should directly consult the franchisor to obtain precise details on the required minimum coverage limits. Understanding these specific requirements is crucial for ensuring adequate protection and compliance with the franchise agreement.