Which entities must Hydrodog franchisees name as additional insured on their insurance policies?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
e) and Worker's Compensation where necessary.
All insurance policies, except your workers compensation and commercial property liability policies, must contain, or be endorsed to contain, a provision naming us and our related entities as an additional insured. Specifically, with respect to liability arising from your premises, operations, products, and completed operations, the general liability policy should include an additional insured – grantor of franchise endorsement.
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, franchisees are required to include Hydrodog and its related entities as additional insured parties on their insurance policies, with specific regard to liability arising from the franchisee's premises, operations, products, and completed operations. This requirement is implemented through a "general liability policy" that includes an "additional insured – grantor of franchise endorsement."
This requirement means that Hydrodog aims to protect itself from potential liabilities arising from the franchisee's business activities. By being named as an additional insured, Hydrodog can be directly covered by the franchisee's insurance policies in the event of a claim. This is a common practice in franchising, as it provides an added layer of financial protection for the franchisor.
It's important to note that this requirement applies to all insurance policies except for workers' compensation and commercial property liability policies. Franchisees must ensure that their insurance policies are properly endorsed to reflect this requirement. Additionally, franchisees must provide Hydrodog with proof of coverage within 10 business days of request.