What is the required coverage period for loss of income insurance that a Dog Haus franchisee must maintain?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
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
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, franchisees are required to maintain business interruption insurance sufficient to cover rents and other fees due to the landlord during any period of business interruption or inability to operate the franchised restaurant. The specific duration of coverage (e.g., in months) is not explicitly stated in this excerpt, but the insurance must be adequate to meet lease obligations during any such interruption.
This requirement ensures that landlords continue to receive payments even if the Dog Haus location is temporarily closed due to unforeseen circumstances. For a prospective franchisee, this means factoring in the cost of business interruption insurance into their operating expenses. The franchisee should carefully review their lease agreement to understand the full extent of their rental obligations and ensure that their insurance policy provides sufficient coverage.
Dog Haus also reserves the right to change the insurance requirements during the term of the Franchise Agreement, including the types and amounts of coverage. Franchisees must comply with any changes to these requirements. This means that franchisees need to stay informed about any updates to the insurance requirements and be prepared to adjust their coverage accordingly. Franchisees should discuss with Dog Haus the typical length of business interruption coverage required to satisfy this requirement.