When must a Dq Treat licensee begin and continue liability insurance coverage?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
ims, demands, damages, and liabilities of any nature whatsoever arising in any manner, directly or indirectly, out of or in connection with or incidental to the Restaurant (regardless of cause or any concurrent or contributing fault or negligence of Company) or any breach or failure to comply with this agreement.
10.3 Insurance.
- (A) Licensee must purchase and maintain at its own expense liability insurance at a minimum limit of liability designated periodically by Company, but not less than $2,000,000 per occurrence, or a higher amount that Company may in the future require of similarly situated franchisees or that a lessor of the Restaurant premises may require. The insurance coverage must start on the earlier of the date Licensee takes possession of the Authorized Location or the date Licensee begins operating the Restaurant, and continue through the later of the Expiration Date or the date the Restaurant closes. Licensee must annually, or any shorter period of time at Company's request, deliver to Company a certificate of insurance and additional insured and other endorsements showing compliance with this section 10.3. The insurance coverage must:
- (1) Insure Licensee, Company, Company's affiliates and any other person or entity designated by Company by name from liability for any and all such damage and injury;
- (2) Be written with a company rated no less than "A" by AM Best Insurance Rating;
- (3) Name International Dairy Queen, Inc. and its affiliates as an additional insured; and
- (4) Provide that Company will be given 30 days' prior written notice of material change in or termination or cancellation of the policy.
- (B) Licensee must purchase and maintain workers' compensation insurance and all additional insurance that may be required by law or other agreement related to the Restaurant.
- (C) If Licensee does not procure and maintain the required insurance coverage, Company may procure insurance coverage for Licensee and charge the cost to Licensee, together with a reasonable fee for Company's expenses in doing so, payable by Licensee immediately upon notice.
- (D) Licensee's obligation to obtain and maintain these insurance policies in the amounts specified is not limited in any way by rea
Source: Item 17 — The following paragraph is added to the end of Item 17 of the Disclosure Document: (FDD pages 70–378)
What This Means (2025 FDD)
According to Dq Treat's 2025 Franchise Disclosure Document, a licensee must secure and maintain liability insurance coverage at their own expense. The minimum liability limit is determined periodically by Dq Treat, but it will not be less than $2,000,000 per occurrence. This amount could be higher if Dq Treat requires it of similarly situated franchisees or if the restaurant's lessor demands a higher amount.
The insurance coverage must begin on the earlier of two dates: when the licensee takes possession of the authorized location or when the licensee starts operating the restaurant. This coverage must continue until the later of the expiration date of the license or the date the restaurant closes. Licensees must provide Dq Treat with a certificate of insurance and any necessary endorsements annually, or more frequently if requested by Dq Treat, to demonstrate compliance.
The franchisee is also obligated to purchase and maintain workers' compensation insurance and any other insurance required by law or other agreements related to the restaurant. If a licensee fails to maintain the required insurance, Dq Treat has the right to obtain insurance coverage on behalf of the licensee and charge the licensee for the cost, including a reasonable fee for Dq Treat's expenses. The franchisee's obligation to maintain the specified insurance coverage is not limited by any insurance that Dq Treat may maintain, nor does it relieve the franchisee of their indemnity obligations.