Can Hydrodog change the insurance coverage requirements outlined in the Manual?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
l insured – grantor of franchise endorsement.
All required insurance policies, except for your Workers' Compensation policy, must be written by insurance companies with a rating of A-VIII (eight) or better in the most recent A.M. Best's Insurance Report (or other comparable publication we specify). Workers' Compensation policies can be issued by insurance companies with a policyholder rating of B plus (B+) or better. Insurance coverage requirements are more specifically set forth in the Manual and are subject to change from time to time. We may require that you obtain all or a portion of your insurance policies from a supplier designated by us.
Currently, the purchases and leases that you must make from us or our affiliates, from approved suppliers, or according to our System Standards represent approximately 70%-100% of your total purchases and leases in establishing, and approximately 80% of your total purchases and leases in operating, your HydroDog Business.
ITEM 9 FRANCHISEE'S OBLIGATIONS
**This table lists your principal obligations under the Franchise and other agreements.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 18–21)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog can change the insurance coverage requirements outlined in the Manual from time to time. The FDD specifies that insurance coverage requirements are detailed in the Manual and are subject to change.
Hydrodog requires franchisees to procure and maintain specific insurance coverage. Currently, the required insurance includes general liability ($1,000,000/$2,000,000) with pet groomer professional liability coverage, animal bailee ($5,000), commercial automobile ($1,000,000) with uninsured motorist coverage for the HydroDog Vehicle, and Worker's Compensation where necessary. Franchisees must provide proof of coverage within 10 business days of Hydrodog's request.
All insurance policies, except workers' compensation and commercial property liability, must include a provision naming Hydrodog and its related entities as additional insured. The general liability policy should include an additional insured – grantor of franchise endorsement, specifically for liability arising from the franchisee's premises, operations, products, and completed operations. Furthermore, all required insurance policies, except for Workers' Compensation, must be written by insurance companies with a rating of A-VIII (eight) or better in the most recent A.M. Best's Insurance Report (or a comparable publication specified by Hydrodog). Workers' Compensation policies can be issued by insurance companies with a policyholder rating of B plus (B+) or better.
Hydrodog also retains the right to require franchisees to obtain all or a portion of their insurance policies from a supplier designated by them. This gives Hydrodog significant control over the insurance requirements and sources, which could impact a franchisee's costs and options. Prospective franchisees should carefully review the insurance requirements in the Manual and discuss any concerns with Hydrodog.