What are the minimum per occurrence and aggregate coverage limits for comprehensive general liability and product liability insurance that a Dog Haus franchisee must maintain?
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, franchisees are required to maintain specific insurance coverage throughout the term of their Franchise Agreement. This includes comprehensive general liability and product liability insurance. The minimum coverage required is $1,000,000 per occurrence and $2,000,000 in aggregate coverage. This insurance must include broad form contractual liability and personal injury coverage, protecting both the franchisee and Dog Haus against claims, suits, obligations, liabilities, and damages, including attorney's fees, related to personal injuries or property damage connected to the franchised restaurant business.
In addition to general and product liability coverage, Dog Haus franchisees must also secure workers' compensation insurance in compliance with state law, employer's liability insurance with $1,000,000 combined single limit coverage, and automobile liability insurance on company vehicles with a combined single limit of at least $1,000,000. Furthermore, franchisees need to obtain loss of income insurance to cover continuing license fees and other fees for at least 12 months, as well as rental value insurance to cover rent and other fees due to landlords or merchants' associations during business interruptions. Employment practices liability insurance and any additional insurance required by the lease for the restaurant premises, including an umbrella policy with limits of $1,000,000 to $3,000,000, are also mandatory.
Dog Haus retains the right to modify these insurance requirements during the term of the Franchise Agreement, including the types and amounts of coverage. Franchisees must comply with any such changes. Failure to obtain the required insurance allows Dog Haus to purchase insurance on the franchisee's behalf, with the franchisee responsible for reimbursing Dog Haus for these costs. This ensures that all Dog Haus locations maintain adequate insurance coverage to protect the brand and its franchisees from potential liabilities.