As a Hydrodog franchisee, am I required to secure worker's compensation insurance?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
y other Indemnified Party be required to seek recovery from any insurer or other third party, or otherwise to mitigate our, their or your losses and expenses, in order to maintain and recover fully a claim against you. You agree that a failure to pursue such recovery or mitigate a loss will in no way reduce or alter the amounts we or another Indemnified Party may recover from you.
19. INSURANCE.
- 19.1 Types Required. Throughout the duration of this Agreement, you are required to maintain, at your own expense, the following types of insurance coverage under policies issued by carriers that we approve. These insurance coverage types must not be altered or reduced without obtaining our prior written approval:
- (a) general liability ($1,000,000/$2,000,000) with pet groomer professional liability coverage;
- (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
- (a) general liability ($1,000,000/$2,000,000) with pet groomer professional liability coverage;
- (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.
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 secure worker's compensation insurance. Item 19.1(d) specifies that franchisees must maintain worker's compensation insurance in the amounts required by applicable law for their HydroDog Business. This means the specific amount of coverage will depend on the legal requirements in the franchisee's location.
In addition to securing the appropriate worker's compensation, Hydrodog franchisees must also comply with all applicable laws, ordinances, and regulations related to worker's compensation insurance, as stated in Item 5.6. This includes adhering to government regulations concerning occupational hazards and health, workplace safety, and other related aspects.
Furthermore, Item 5.6 emphasizes that franchisees must secure and maintain all necessary insurance, licenses, permits, and certificates required to operate their HydroDog Business. Before opening, franchisees must furnish Hydrodog with copies of all required insurance policies, including worker's compensation, as stated in Item 5.8(f). This ensures that the franchisee has the necessary coverage in place before commencing operations, protecting both the franchisee and their employees.