When must a Dq Treat licensee provide a certificate of insurance to the company?
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 the 2025 Dq Treat FDD, a licensee must provide a certificate of insurance to the company annually, or for any shorter period of time at the company's request. This certificate serves as proof that the licensee is maintaining the required insurance coverage.
The insurance coverage must begin on the earlier of the date the licensee takes possession of the authorized location or the date the licensee begins operating the restaurant. This coverage must continue through the later of the expiration date of the license or the date the restaurant closes. The minimum liability insurance must be at least $2,000,000 per occurrence, or a higher amount if required by Dq Treat or the lessor of the restaurant premises.
It is the licensee's responsibility to secure and maintain the necessary insurance. If a licensee fails to do so, Dq Treat has the right to obtain insurance coverage on the licensee's behalf and charge the licensee for the cost, along with a reasonable fee for expenses. The licensee's obligation to maintain insurance is separate from any indemnity obligations they may have under the agreement.