What specific liabilities must the Dryject franchisee's commercial general liability insurance cover?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
amage 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 occurrence and Two Million Dollars ($2,000,000.00) general aggregate. Coverage must be written on an occurrence basis only, not claims-made;
(iii) You shall maintain or cause to be maintained commercial automobile liability insurance against claims for personal injury, death or property damage occurring as a result of the maintenance or operation by You of any automobiles, trucks or other vehicles used in the operation of the Franchised Business in an amount set forth in the Operations Manual, currently not less than One Million Dollars ($1,000,000.00) Combined Single Limit;
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, franchisees must maintain commercial general liability insurance. This insurance must include coverage for premise liability, products/completed-operations, and contractual liability. These coverages are designed to protect against claims for bodily injury or property damage that arise from the operation of the Dryject franchised business and in accordance with the Franchise Agreement. The required coverage amount is currently not less than $1,000,000 for each occurrence and $2,000,000 in general aggregate.
This requirement ensures that Dryject franchisees have adequate financial protection against potential liabilities. Premise liability covers incidents that occur on the business premises, while products/completed-operations coverage protects against claims related to the services provided. Contractual liability covers obligations the franchisee assumes under agreements, including the franchise agreement itself. The insurance policy must be written on an occurrence basis, meaning it covers incidents that occur during the policy term, regardless of when the claim is made.
Dryject also requires that all insurance policies name them as an additional insured/loss payee. This protects Dryject against any liability that may arise from the franchisee's operation of the business. The franchisor also retains the right to increase the minimum coverage limits or add new types of required coverage, as detailed in the Operations Manual. Franchisees must provide certificates of insurance to Dryject at least ten days before opening their franchised business to demonstrate compliance with these insurance requirements.