What kind of insurance is Dryject franchisee required to maintain for their employees?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
- (iv) You shall maintain or cause to be maintained workers' compensation insurance, in such amounts as may now or hereafter be required by any applicable law, and shall withhold from the pay of Your employees and pay any and all amounts required to be so paid for unemployment compensation, disability, Social Security, and other such federal, state and/or local taxes imposed upon You as an employer;
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, franchisees are required to maintain workers' compensation insurance to cover their employees. The specific amounts of coverage must comply with all applicable federal, state, and local laws. Additionally, Dryject franchisees must withhold and pay all required amounts for unemployment compensation, disability, Social Security, and other relevant taxes imposed on them as employers.
This requirement ensures that Dryject franchisees meet their legal obligations regarding employee welfare and social security. It also protects the employees in case of work-related injuries or illnesses, providing them with necessary medical care and compensation. Furthermore, it shields the franchisee from potential legal liabilities associated with employee-related incidents.
Beyond workers' compensation, Dryject franchisees must also maintain commercial general liability insurance, commercial automobile liability insurance, and an umbrella policy. These policies, along with the workers' compensation coverage, collectively safeguard the business, its employees, and third parties from various risks and liabilities. The franchisee must provide certificates of insurance to Dryject at least ten days before opening their franchise, demonstrating their compliance with these insurance requirements.