When must a Dolce Hotels franchisee have active insurance coverage?
Dolce_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
dards and add new ones through updates to the Manual.
You will obtain and maintain during the term of the agreement the insurance coverage required by Section 3.8 of the Dolce Franchise Agreement and under the System Standards Manual, which is outlined below. All Dolce hotels must have active insurance coverage effective at the start of construction or renovation and in continuous force while operating under the Dolce System or as a Dolce. Each insurance policy must include as a named insured the party or parties (and their respective successors or assigns) that are identified as the "Franchisee" or "Franchisees" in the Franchise Agreement. Coverage must be on an occurrence basis. Each liability policy must name as an additional insured all of the following: Dolce International Holdings, Inc.; Wyndham Hotels & Resorts, Inc.; Wyndham Hotel Group, LLC; and all related entities and all of their current and former subsidiaries, affiliates, successors, and assigns, as their respective interests may appear. Each liability policy must provide that the insurance coverage for each additional insured is primary and is not contributory with or excess of any insurance coverage that may be available to an additional insured.
Specific coverages include Commercial General Liability Insurance with minimum coverage of $1,000,000 combined single limit per occurrence covering premises, products, independent contractors, bodily injury, personal injury, contractual and advertising liability, property damage, and insured contract liability; Liquor Liability with minimum coverage of $1,000,000 per occurrence as well as inclusion in excess liability coverage if beer, liquor, or alcoholic beverages are sold or served on site, including but not limited to, by restaurants or lounges, minibars, or vending machines; Comprehensive Automobile Liability Insurance with minimum coverage of $1,000,000 combined single limit per occurrence on all vehicles; Worker's Compensation in compliance with state laws; Employers Liability Insurance with minimum coverage of $100,000; Business Interruption (Loss of Earnings) Insurance with a minimum of $100,000 of coverage, actual loss or twelve (12) months sustained; and Umbrella/Excess Liability Insurance at least as broad as
the required underlying coverage. If the Facility has four (4) stories or fewer, there must be an additional $9,000,000 in excess liability coverage for a total of $10,000,000. If the Facility has five (5) stories or greater, there must be an additional $14,000,000 in excess liability coverage for a total of $15,000,000. In addition, each Franchisee with an on-site restaurant, including but not limited to an owned or leased lounge or recreational facility space, must require that the operator satisfy the minimum insurance requirements listed in the System Standards Manual.
The failure to carry insurance coverage meeting the requirements described in the System Standards is a material default under the Franchise Agreement and may be grounds for termination of the Franchise Agreement. In addition, should you for any reason fail to procure or maintain the insurance required, we have the right and authority (without, however, any obligation) to immediately procure such insurance and to charge the cost thereof to you, which charge, together with a reasonable fee for our expenses in so acting, will be payable by you immediately upon demand.
We estimate that the items you purchase meeting System Standards will represent approximately 50% to 75% of your total initial expenditures for goods and services in establishing a new construction or conversion Facility.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 49–51)
What This Means (2025 FDD)
According to Dolce Hotels' 2025 Franchise Disclosure Document, franchisees must maintain active insurance coverage throughout the term of the franchise agreement. Specifically, all Dolce Hotels locations must have continuous insurance coverage that becomes effective at the start of construction or renovation and remains in force while operating under the Dolce system or as a Dolce Hotel.
This requirement ensures that Dolce Hotels franchisees are protected from potential financial losses due to property damage, liability claims, and other unforeseen events. The coverage must be on an occurrence basis, meaning it covers incidents that occur during the policy term, regardless of when the claim is filed. The policy must also name Dolce International Holdings, Inc.; Wyndham Hotels & Resorts, Inc.; Wyndham Hotel Group, LLC; and all related entities as additional insured parties.
The insurance coverage must include Commercial General Liability Insurance with minimum coverage of $1,000,000, Liquor Liability with minimum coverage of $1,000,000 if alcohol is sold, Comprehensive Automobile Liability Insurance with minimum coverage of $1,000,000, Worker's Compensation in compliance with state laws, Employers Liability Insurance with minimum coverage of $100,000, Business Interruption (Loss of Earnings) Insurance with a minimum of $100,000 of coverage, and Umbrella/Excess Liability Insurance. The amount of Umbrella/Excess Liability Insurance depends on the number of stories the facility has. If the facility has four stories or fewer, there must be an additional $9,000,000 in excess liability coverage for a total of $10,000,000. If the facility has five stories or greater, there must be an additional $14,000,000 in excess liability coverage for a total of $15,000,000.
Failure to maintain the required insurance coverage constitutes a material default under the Dolce Hotels Franchise Agreement and may result in termination of the agreement. Dolce Hotels also reserves the right, but not the obligation, to procure the necessary insurance coverage on behalf of the franchisee if they fail to do so, and to charge the franchisee for the cost of the insurance plus a reasonable fee for expenses.