What is the minimum amount of commercial general liability insurance a Dryject franchisee must maintain for each occurrence?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
ue in full force and effect subsequent to and notwithstanding the expiration or termination of this Agreement or any renewal term.
- (b) You agree to maintain insurance as follows:
- (i) With respect to all insurable properties, You shall maintain or cause to be maintained, all-risk property insurance against loss or damage to business and personal property of the Franchised Business in amounts not less than the replacement cost of such property;
- (ii) You shall maintain or cause to be maintained commercial general liability insurance, including premise liability, products/completed-operations and contractual liability, covering claims for bodily injury or property damage caused as a result of the operation of the Franchised Business and pursuant to this Agreement in amounts set forth in the Operations Manual, currently not less than One Million Dollars ($1,000,000.00) for each occurrenc
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 commercial general liability insurance. This insurance must include premise liability, products/completed-operations, and contractual liability. The minimum coverage required is $1,000,000.00 for each occurrence and $2,000,000.00 in general aggregate.
This insurance coverage is intended to protect both the franchisee and Dryject from claims related to bodily injury or property damage resulting from the operation of the franchised business. It is important to note that the coverage must be written on an occurrence basis, meaning it covers incidents that occur during the policy term, regardless of when the claim is filed.
Dryject also requires that all insurance policies are written by an insurance company that is satisfactory to them. Furthermore, Dryject is to be named as an additional insured/loss payee on all liability insurance policies, protecting them against any liability arising from the franchisee's operation of the business. Dryject retains the right to increase the minimum limits or add new types of required coverage as detailed in the Operations Manual.
It is the franchisee's responsibility to ensure they obtain and maintain the required insurance policies, and this obligation is not limited by any insurance Dryject may maintain. Franchisees must provide certificates of insurance to Dryject at least ten days before opening their franchised business, demonstrating their compliance with these insurance requirements.