What is the minimum general aggregate amount for the commercial general liability insurance that a Dryject franchisee must maintain?
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 with specific coverage amounts. This insurance must include premise liability, products/completed-operations, and contractual liability to cover claims for bodily injury or property damage resulting from the operation of the Dryject franchised business. The minimum coverage required is $1,000,000 for each occurrence and $2,000,000 for the general aggregate.
This insurance 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, and not on a claims-made basis. Maintaining adequate insurance is a standard requirement in franchising to protect both the franchisee and the franchisor from potential liabilities arising from business operations.
Dryject also requires that all insurance policies be written by an insurance company that is satisfactory to them. Furthermore, Dryject must be named as an additional insured/loss payee on all liability insurance policies, protecting them against any liability that may arise from the franchisee's operation of the business. Dryject retains the right to increase the minimum coverage limits or add new types of required coverage as detailed in the Operations Manual.
It is important for prospective Dryject franchisees to understand these insurance requirements and factor the costs of obtaining and maintaining the necessary coverage into their business plan. Franchisees must provide certificates of insurance to Dryject at least ten days before opening their franchised business to demonstrate compliance with these requirements.