Can Hydrodog decrease the minimum amounts of insurance coverage required under these insurance policies?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
overage; - (b) animal bailee ($5,000); - (c) commercial automobile ($1,000,000) with uninsured motorist coverage ;
- (d) workers' compensation in the amounts required by applicable law for your HydroDog Business; and
- (e) such other insurance as is required under the automobile lease agreement and any lease or other financing document (if any) for your HydroDog Business.
- 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, franchisees are required to maintain specific insurance coverage throughout the agreement. While Hydrodog may periodically increase the required coverage amounts, they will not decrease them. Additionally, Hydrodog retains the right to mandate different or additional types of insurance to reflect factors such as inflation, new risk identification, legal changes, liability standards, or higher damage awards.
Franchisees must secure Hydrodog's prior written approval before altering or reducing any of the required insurance coverage types. The insurance policies must also adhere to specific terms, including providing indemnity for all obligations assumed by the franchisee under the agreement, naming Hydrodog and its affiliates as additional insureds, and containing a waiver of the insurance company's right of subrogation against Hydrodog.
Furthermore, franchisees cannot reduce policy limits, restrict coverage, cancel, or otherwise alter the policies without Hydrodog's prior written consent. Any attempt to do so without consent constitutes a material breach of the franchise agreement. Franchisees must also provide Hydrodog with copies of new, renewal, or replacement policies and evidence of premium payments before the expiration of each policy's term.