How does the Dryject franchise agreement define 'all-risk property insurance'?

According to the 2025 Dryject Franchise Disclosure Document, franchisees are required to maintain 'all-risk property insurance' on all insurable properties. This insurance must cover loss or damage to the business and personal property associated with the Dryject franchise. The coverage amount must be no less than the replacement cost of the property.

In practical terms, this means a Dryject franchisee needs to secure an insurance policy that protects against a wide range of potential perils that could damage or destroy their business assets. This typically includes risks like fire, theft, vandalism, natural disasters (depending on the location), and other unforeseen events. The policy should be comprehensive enough to cover the full cost of replacing any damaged or lost property, ensuring the franchisee can quickly recover and resume operations.

The requirement to maintain all-risk property insurance is a standard practice in franchising, designed to protect both the franchisee and the franchisor from financial losses due to property damage. By mandating this type of insurance, Dryject aims to ensure that its franchisees can continue operating their businesses even after experiencing a significant loss. Franchisees should carefully review their insurance needs and consult with an insurance professional to determine the appropriate coverage levels for their specific circumstances.

It is important to note that the FDD excerpt does not provide a specific definition of 'all-risk property insurance' beyond covering loss or damage to business and personal property. Franchisees should seek clarification from Dryject or their insurance provider regarding the specific perils covered under such a policy to ensure they have adequate protection.