What is the minimum liability insurance limit per occurrence that a Dq Treat licensee must maintain?
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 maintain liability insurance at their own expense. The minimum limit of liability is $2,000,000 per occurrence. However, this amount could be higher if the company periodically designates a higher limit for similarly situated franchisees or if the lessor of the restaurant premises requires a higher amount.
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 or the date the restaurant closes. Licensees must provide the company with a certificate of insurance and additional insured and other endorsements annually, or more frequently if requested by the company, to demonstrate compliance.
The insurance policy must insure the licensee, the company, the company's affiliates, and any other designated person or entity against liability for damage and injury. The insurance company must have a rating of no less than "A" by AM Best Insurance Rating. International Dairy Queen, Inc. and its affiliates must be named as additional insured parties. The company must receive 30 days' prior written notice of any material change, termination, or cancellation of the policy. If a licensee fails to maintain the required insurance coverage, the company has the right to procure insurance on behalf of the licensee and charge the licensee for the cost, along with a reasonable fee for expenses.