Before the expiration of each insurance policy, what must a Hydrodog franchisee furnish to Hydrodog?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
19.4 Evidence of Coverage. Before the expiration of the term of each insurance policy, you must furnish us with a copy of each new, renewal or replacement policy you have obtained to extend your coverage, along with evidence of the premium payment. If you fail to maintain the required insurance coverage, or fail to furnish us with satisfactory evidence of insurance coverage and premium payments, we reserve the right, in addition to our other rights and remedies under this Agreement, to obtain any required insurance coverage on your behalf at your expense. If we do so, you must fully cooperate with us in our effort to obtain the insurance policies and must promptly sign all forms required to obtain or maintain the insurance. You must also allow any inspections of your HydroDog Business required to obtain or maintain the insurance. Finally, you must pay us, on demand, any costs and premiums we incur in obtaining insurance on your behalf. Neither your obligation to maintain insurance coverage nor our maintenance of insurance on your behalf will reduce or absolve you of any obligations of indemnification described in this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, franchisees must provide Hydrodog with specific documentation before their insurance policies expire. Specifically, the franchisee must furnish a copy of each new, renewal, or replacement policy obtained to extend coverage. In addition to the policy itself, the franchisee must also provide evidence of premium payment.
This requirement ensures that Hydrodog franchisees maintain continuous and adequate insurance coverage, protecting both the franchisee and the franchisor from potential liabilities. By requiring copies of policies and proof of payment, Hydrodog can verify that franchisees are meeting their insurance obligations as outlined in the franchise agreement.
Failure to comply with this requirement can have consequences. Hydrodog reserves the right to obtain the required insurance coverage on behalf of the franchisee if the franchisee fails to maintain coverage or provide satisfactory evidence of insurance and premium payments. The franchisee will be responsible for all costs and premiums incurred by Hydrodog in obtaining this insurance. This underscores the importance of franchisees proactively managing their insurance and providing the necessary documentation to Hydrodog in a timely manner.