Does Hydrodog have the ability to increase the minimum insurance coverage amounts required in the System Standards?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- 19.2 Coverage Requirements. You must maintain the insurance coverages in the minimum amounts we prescribe from time-to-time in our System Standards. We may periodically increase the amounts of coverage required under these insurance policies, but will not decrease them, and may require different or additional kinds of insurance at any time to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards or other relevant changes and circumstances.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog has the authority to modify the minimum insurance coverage amounts required for franchisees. Specifically, Hydrodog may periodically increase the amounts of coverage required under the insurance policies detailed in the System Standards. However, Hydrodog is not allowed to decrease these coverage amounts.
Hydrodog can also require different or additional kinds of insurance at any time. These changes can reflect factors like inflation, identification of new risks, changes in law or standards of liability, higher damage awards, or other relevant changes and circumstances. This means a franchisee could face increased costs for insurance during the term of their agreement.
It is important for prospective Hydrodog franchisees to understand that insurance requirements can change and that they will be responsible for meeting any increased coverage levels mandated by Hydrodog. Franchisees must maintain the insurance coverages in the minimum amounts Hydrodog prescribes from time-to-time in its System Standards.